Bounce back after 10-month losses
After reporting losses in the first 10 months after the takeover, Tata-owned Jaguar-Land Rover have reported a Rs 8,170 crore (£ 1.1 billion) annual profit for the financial year 2010-2011.
It’s been a remarkable turnaround for the car-maker that was caught in a recession that hit the industry two years ago.
J-LR are set to declare £ 1.1 billion profit for the year to March 31, compared with a gain of 32 million pounds last year and a 281-million-pound loss in the first 10 months after Tata took over. The record profit comes just two years after the car maker sought the government’s support and warned of a ‘national emergency’ in the industry as sales tumbled.
The turnaround is the result of rapidly growing sales in markets such as India and China, where cars are a status symbol for the growing middle class, and investment from Tata in new models such as the Range Rover Evoque. In March, more Land Rovers were sold in the UK than any other month in the company’s history.
Land Rover also recorded 33 per cent rise in March sales in China and 61 per cent in India, while Jaguar enjoyed its best month in India as well as a 70 per cent rise in Russian sales and a 49 per cent rise in Germany.
Meanwhile, Tata Motors Group reported consolidated revenues (net of excise) for the year ended March 31, 2011, of Rs.123,133 crores, posting a growth of 33.1% over Rs.92,519 crores in the previous year, with strong volume growth globally in all major markets. Tata Motors’ gross revenue for the year ended March 31, 2011, was Rs.52,136 crores, posting a growth of 35.9% over Rs.38,364 crores in the previous year.
