Tata Motors shares jump after strong JLR sales boost profit

Tata Motors shares jumped over 8 per cent in early trade after strong sales of its luxury Jaguar and Land Rover vehicles helped triple the company's first-quarter net profit.

India's biggest automaker by revenue on Monday reported a consolidated net profit of Rs 53.98 billion ($882.31 million), the highest in nine quarters, compared with Rs 17.26 billion a year ago.

Analysts had expected, on average, profit of 37.1 billion rupees, according to Thomson Reuters I/B/E/S.

Cheering the news, shares of Tata Motors jumped over 8 per cent in early trade. The scrip, among the best performers on bourses on Tuesday, was trading 5.92 per cent higher at Rs 473.90 on the Bombay Stock Exchange at 10.48 am.

Tata Motors bought British carmaker Jaguar Land Rover (JLR) in 2008, and it has been propping up profits at its parent for the past few years - helped by strong sales growth in China, the world's biggest auto market.

Jaguar's and Land Rover's retail sales in the April-June quarter rose 22 per cent to 115,596 units from a year ago.

Operating margins at the business rose to 20.3 per cent from 15.8 per cent a year ago while margins at Tata Motors' Indian business fell to minus 2.8 per cent from 2.3 per cent.

(Reuters)