Changes to the way JLR’s pension payments are calculated resulted in a one-time gain of Rs 3,609 cr
Profit was Rs 3,182 crore in the first quarter ended June 30, compared with Rs 2,236 crore a year earlier, the company said.
The automaker, owned by the software-to-salt conglomerate Tata Group, said its total income fell about 10% to Rs 59,972 crore versus Rs 66,339 crore a year ago.
After announcing results, the company said, “First quarter results have not met our expectations.” It plans to launch its new car Nexon in September.
The company made a one- time gain of Rs 3,609 crore related to the changes made to Jaguar Land Rover pension plans.
Volume sales, including exports of commercial and passenger vehicles for the quarter stood at 1,11,860 units, down 11.8% when compared to the corresponding quarter last year, it said.
Tata Motors said its operating performance broadly reflected JLR’s lower wholesale volumes excluding China JV and continuation of higher competitive incentive levels and launch and growth costs seen in FY17.
In the domestic market, there has been significant de- growth in the medium and heavy commercial vehicles segment, flat light commercial segment and moderate growth in passenger vehicles segment.
Tata Motors MD & CEO Guenter Butschek said: “While the first quarter results have not met our expectations, we are working with renewed focus and energy to improve performance of our commercial and passenger vehicle businesses.” On a standalone basis, Tata Motors posted loss of Rs 467.05 crore for the June quarter of 2017-18 fiscal. It had registered a profit of Rs 25.75 crore in the same period of 2016-17.