Shares of Tata Motors surged over 10 per cent on Tuesday after the company posted a three-fold rise in consolidated net profit for the fourth quarter ended March 31.
The stock jumped 10.30 per cent to Rs 463.90 on BSE. The scrip was the top gainer among the 30-Sensex components during the morning trade. On NSE, it soared 10.11 per cent to Rs 463.85.
The company’s result came after market hours on Monday.
A remarkable turnaround of its struggling domestic unit, recorded high volumes and margin improvements at its marquee British business boosted Tata Motors Group’s net profit by three-fold to Rs 5,177 crore in the three months to March from over Rs 1,717 crore a year ago.
Profit of its British unit Jaguar Land Rover, which has been its cash machine for many years now, soared 56.3 per cent to 472 million pounds from 302 million pounds a year ago, driven by record sales across its key markets of Europe, China and the US.
While JLR’s retail sales in Europe surged 55 per cent in the quarter under review, its deliveries in China climbed 19 per cent, driven by the local production of the Land Rover Discovery Sport SUV and the ramp up of the Jaguar XE sedan. This helped JLR, for the first time, cross the half-a-million sales mark at 5,21571 units for the year.
Standalone net sales stood at Rs 12,459.51 crore as against Rs 10,676.19 crore, driven primarily by truck and bus business and partly by the demand for its new cars – the Bolt, Zest and the new Nano.
For the full year, the domestic unit posted a net profit of Rs 234.23 crore as against a whopping net loss of Rs 4,738.95 crore in 2014-15.
Domestic net sales rose 16.87 per cent to Rs 41,948 crore during the fiscal compared with Rs 35,890.5 crore in 2014-15.