Tata Motors announced its quarterly figures earlier today and the announcement seemed to have broken the estimates. The company registered a profit of ₹32oo crores, up 41% from ₹2260 crores in the same period a year ago. The change in profit is estimated because of the changes in the pension plan at the UK unit of Tata Motors, known as Jaguar – Land Rover.
Though the net profit surged, the company saw a decline in the net sales. Net sales for Tata Motors dropped 10% to ₹58,651 crores in the quarter which ended in June 2017. Last year, in the first quarter, the net sales were worth ₹65,115 crores. The major reasons for the decline in sales included the not-so-good response of sales of Jaguar Land Rover unit in the UK along with muted sale of high capacity trucks in the country.
Medium and heavy commercial vehicles sales declined by a steep 34% and the stand-alone entity saw a loss of ₹466.85 crores, the same had registered a profit of ₹37 crores a year earlier.
Despite the decline in sales and sales figures, the company surpassed all the predictions. An analyst poll by Bloomberg had predicted the profit to be around ₹1480 crores.
Tata Motors shares are expected to go up tomorrow. In today’s trade, the shares closed at ₹416.75, down 3.17% compared to the opening mark.