Excellent and consistent growth in numbers and volumes for it’s British luxury car brand Jaguar Land Rover (JLR) has aided Indian vehicle manufacturer Tata Motors triple its fortified net profit in Q4 which culminated in March to Rs 1,716.5 crore, while the net sales grew 18.76% to Rs 79,926.8 crore.
Jaguar-Land Rover’s (JLR) net profit soared 56.29% to 472 million pounds (Rs 4,629 crore) while net sales increased 13.18% to 6,594 million pounds (Rs 64,681 crore). The profits containeda erstwhile gain of 58 million pounds (Rs 555 crore) on the account of insurance claims which were linkedto the losses due to the blasts which happened at Tianjin, China.
Through the medium of modernmodels like the Jaguar XE and Discovery Sport, JaguarLandRover sold a total of 158,213 units during the quarter, up by 28%. For the one year which culminated in March, the company sold totally 521,571 units, up by 13% one year ago.
A transposition in the business in India, Aided by a consistent and strong growth in the medium and heavy-duty truck segment also helped the fortified profit. The company’s domestic operations reported a net profit of Rs 465 crore in the quarter against a loss of Rs 1,164 crore one year ago.
Communicating on the growth viewpoint for the company’s Commercial Vehicle business in FY 2017, C Ramakrishnan, CFO of Tata Motors, said that “Growth in heavy commercial vehicles is expected to remain buoyant thanks to the resulting replacement desire as well as for the requirement of expansions of the fleet lineup.
However, Mr. Ravi Pisharody, executive director, Commercial Vehicles, Tata Motors shed some light on the matter that the strong growth scale which was seen last year in the Medium &Heavy Commercial Vehicles segment which was due to a low base is not likely to be recapitulate this year and that the growth pattern is likely to reach a saturation point at 15-17% in 2016-2017 from the 30% in the last fiscal year.
“We presented our overall transformation plan to the board. It got approved. We discussed brand repositioning and brand identity. We can now go full steam ahead,” said Butschek. He also elaborated on the fact that he was amazed at the response to the Tiago which it received from the car market, which is further off from the company’s supposition. “The Tiago has gained great momentum and exceeded our expectations. We have received 20,000 confirmed orders for the Tiago and around 140,000 enquiries since its launch eight weeks ago,” he said.
The astonishing response has directly resulted in the company adding a second shift at its Sanand plant in Gujarat, where the Tiago is being manufactured. “We will see significant increase in the output of the Tiago in the coming weeks and this will lead to a much larger exposure of the car on the roads,” Butschek said.