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Tata Motors PV profit plunges 80% in Q1 on JLR weakness
Tata Motors Passenger Vehicles reported an 80% drop in consolidated net profit for the April-June quarter, hurt by weak performance at Jaguar Land Rover and rising commodity costs. The company's India passenger…
The Story in Brief
Tata Motors Passenger Vehicles reported an 80% drop in consolidated net profit for the April-June quarter, hurt by weak performance at Jaguar Land Rover and rising commodity costs. The company's India passenger vehicle business, however, saw revenue rise 65% and turned profitable before tax and exceptional items. Sources differed on the exact profit figure: auto.economictimes reported Rs 775 crore, while Livemint said Rs 859 crore.
JLR's profit after tax fell 74% to £66 million, and its revenue dropped 10% to £6 billion due to supply constraints, a fire at a major component supplier, and the planned wind-down of Jaguar models. Tata Motors warned that commodity price pressure would persist through the second quarter, hitting the whole industry. The company reaffirmed its target of achieving £1.7 billion in cost savings at JLR over two years.
The Indian Opinion
The usual narratives pit JLR's trouble against India's EV boom as though one cancels the other. The truth is more mundane: Tata Motors is a two-legged stool, and one leg is wobbling. The India business is impressive but small, Rs 17,930 crore revenue against JLR's £6 billion, so a JLR stumble dominates. Investors should watch Q2 numbers closely. If JLR's cost savings miss the £1.7 billion target, the story shifts from 'short-term pain' to 'structural problem'.
Sources (3): auto.economictimes.indiatimes.com, livemint.com, livemint.com (2)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
