Jaguar Land Rover posted a record net profit of GBP1.9 billion in fiscal year ended March 31, 2014, compared to GBP1.2 billion in the previous fiscal year. The record profit was achieved thanks to a very strong fiscal fourth quarter, in which the carmaker saw its net profit surge to GBP449 million (EUR552 million) from GBP377 million in the previous period.
The carmaker posted an 8-percent jump in deliveries in the quarter to 124,776, boosted by strong demand. JLR, a unit of Tata Motors, also logged a 16-percent rise in global deliveries in the fiscal year to 434,311 vehicles.
Both the Jaguar and Land Rover brands saw a 34-percent rise in sales in China to 103,077 units in the fiscal year ended March 31 – more than what the carmaker sold in North America and Europe in the period.
JLR is expecting to commence operations of a new manufacturing site in China later in 2014, allowing it to cut the strain on its UK plants as well as ensuring that it could meet future growth in demand.
In comparison, Tata's operations in India succumbed to INR8.17 billion in (EUR102.6 million) in net loss in the fourth fiscal quarter, a further decline from INR3.12 billion in net loss a year ago.
Alex Mathews, head of research at Geojit BNP Paribas Financial Services, remarked that he is not expecting “any miracles” from Tata Motors’ local business unit, saying that it has already dropped a lot and will continue to underperform in the next one or two quarters.
Tata Motors said that the slump in its local business has resulted to a drop in consolidated fourth-quarter profit to INR39.2 billion in the 2013-2014, from INR39.5 billion in the period a year before.
Despite the loss-making quarter, Tata's Indian business unit still posted INR3.4 billion in fiscal-year profit while Tata Motors logged INR139.9 billion in net profit.