Tata Motors' Q2 net surges 71%, beats estimates

Tata Motors Ltd beat analyst estimates by posting a 71 per cent jump in profit, its first quarterly gain in a year, as buoyant sales at luxury unit Jaguar Land Rover Ltd received a lift from new models.

Tata Motors, part of the $100 billion Tata conglomerate, has become dependent on its UK unit to prop up profits.

At home, passenger and commercial vehicle

sales have suffered from an environment of high interest rates and fuel prices in an economy growing at its slowest pace in a decade.

Net profit was Rs 3,542 crore (Rs 35.42 billion) for the fiscal second quarter ended September 30 compared with Rs 2,075 crore (Rs 20.75 billion) a year earlier, Tata Motors said in a statement on Friday. Net sales rose 30% to Rs 55,701 crore (Rs 557.01 billion).

Shares of Tata closed up 1.1% before the earnings release whereas the benchmark index ended down 0.8%.