Tata profits hit by Slowing Jaguar Land Rover sales

Tata Motors’ second-quarter profit fell 7 percent as sales at its luxury Jaguar Land Rover unit slowed.

Net income fell to 32.9 billion rupees ($533 million) in the quarter ended September, the Indian company reported.

That compares with the 45.9 billion rupee median of 37 analysts’ estimates compiled by Bloomberg.

Tata’s revenue climbed 7 percent to 605.6 billion rupees.

Profit at Jaguar Land Rover fell to  £450 million ($705 million) from  £507 million a year earlier. Deliveries at the UK carmaking group, which last month opened a factory in China, rose 8 percent in the fiscal second quarter, slower than the 22 percent pace in the preceding three months, dragged down by a decline in sales in North America.

JLR’s sales increased 4 percent in the second quarter to  £4.81 billion, Tata said.

“Jaguar Land Rover volumes should start picking up once the XE model goes on sale and the China plant production picks up at the end of the year,” Bharat Gianani, an analyst at Angel Broking in Mumbai, said before the results.

A prolonged slump in demand for Tata Motors’ cars and trucks at home also dented the automaker’s earnings.