Tata Motors posts Q2 net income of Rs21.78 crore
27 November 2009
Tata Motors Ltd posted a profit in the second quarter after it cut costs at Jaguar Land Rover, the UK luxury car maker it acquired from Ford Motor of the US.
The auto major's consolidated net income in the quarter ended 30 September was Rs21.78 crore as against a loss of Rs942 crore a year earlier. The company's sales were down 8.5 per cent to Rs2,090 crore.
Chairman Ratan Tata has appointed two UK-based companies, KPMG International and Roland Berger Strategy Consultants, to help cut costs, which has led to 2,200 job cuts over a year. Jaguar Land Rover said in September that it might close one of two factories in England's West Midlands.
According to analysts, the worst may be over for Tata Motors and the environment seems to have stabilised for Jaguar Land Rover helped by cost-cutting measures.
The UK-based unit is likely to break even in the fiscal ending 31 March 2012,analysts say.
Tata said on 16 November that he expected Jaguar Land Rover to turn the corner after a 'very difficult' time. According to Ian Callum, Jaguar's design director, the company aims to sell as many as 25,000 Jaguar cars annually starting next quarter.