Tata Motors Q4 net jumps more than 2-fold at Rs 6,234 cr

Tolaha

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It's not really due to exports. A huge chunk of the revenue share for Tata Motors nowadays comes from Jaguar and Land Rover sales. These vehicles are all manufactured outside of India and sold outside as well. It wouldn't count as export.

JLR is the shining star among Tata's major buys abroad.
 

Ray

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Give them Air India and it will also become a Bluechip!
 

sehwag1830

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It's not really due to exports. A huge chunk of the revenue share for Tata Motors nowadays comes from Jaguar and Land Rover sales. These vehicles are all manufactured outside of India and sold outside as well. It wouldn't count as export.

JLR is the shining star among Tata's major buys abroad.
Well you can consider them overseas subsidiary of Tata Motors.I am sure some Indian employees must also have been at JLR site.
 

sky

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The profit's will be even higher next year as we have new model's coming on stream, we have the new range rover launch this year. Many many positives but some negative,we will have almost 2000 extra head's this year who will be paid 20% less then other full time workers. When the business will make over 1.5 billion pound's profit it seems harsh to have people doing the same job in the same factory earning 2 different salaries, i hope the union get there pay up to match our's before to long....
 

Tolaha

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The profit's will be even higher next year as we have new model's coming on stream, we have the new range rover launch this year. Many many positives but some negative,we will have almost 2000 extra head's this year who will be paid 20% less then other full time workers. When the business will make over 1.5 billion pound's profit it seems harsh to have people doing the same job in the same factory earning 2 different salaries, i hope the union get there pay up to match our's before to long....
You work for JLR?
 

sky

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I do yes and we are on a 2 week plant shut down so range rover when launched can have a uninterrupted run till Christmas...
 

Singh

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SomehowRR evoque doesn't appeal to the RR purist in me
 

Tolaha

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we will have almost 2000 extra head's this year who will be paid 20% less then other full time workers.
What's the reason for this differential salary, are they new joiners?
 

sky

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The company in it's wisdom has decided to save money and realised that even paying 20% less for new starters will see them earn a good salary ,so that's what they did. We are worried there will come a time when the company will end the unfairness by freezing our pay while increasing theres until they catch up with us. That will only piss us off as they are trying to reduce there cost's at a time when profit's have increased by more then 50% per year ,over the last 3 years..
 
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Blackwater

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Jaguar Land Rover celebrates record £1.5bn profits

WORKERS at Coventry-based Jaguar Land Rover are celebrating record profits and best ever sales.

The car maker sold 314,433 vehicles in the last financial year – the most in the history of Jaguar and Land Rover.

That meant revenue rose by a whopping 37 per cent to £13.5billion.

The resurgent luxury car maker, which has its global headquarters at Whitley, in Coventry, is celebrating a record £1.5billion profit, partly driven by booming demand from China.


The good news was welcomed by council and business leaders and unions representing the 5,000 workers employed at Coventry and Gaydon.

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said the profits boost was positive news for the region.

She said: "Jaguar Land Rover is a fantastic success story for Coventry and Warwickshire and it underlines the resurgence of our automotive sector.

"Not only is it a wonderful achievement for Jaguar Land Rover it has a great knock-on effect for the supply chain in the region and beyond, which provides a massive boost for the economy.

"It is also a great advert for UK plc and is an example to others – large and small – of how important it is to find new markets overseas."

The latest good news comes just two weeks after the firm announced a £1billion investment for its UK suppliers which will create a wealth of new jobs.

Leader of Coventry council Coun John Mutton said he was delighted at the record figures.

He added: "This justifies Jaguar Land Rover's decision to keep Coventry as the main centre for design and research.



Read More Jaguar Land Rover celebrates record £1.5bn profits - Coventry News - News - Coventry Telegraph
 

Blackwater

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Bastard goras dont even mentioned that this profit is due to Indian management .other wise under goras, this company was bank corrupt

bloody goras fooling their own white shit people
 

Tolaha

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Bastard goras dont even mentioned that this profit is due to Indian management .other wise under goras, this company was bank corrupt

bloody goras fooling their own white shit people
Tata Corus isn't doing that well. You want Indians to be blamed for that? :D


An article that points out what made the Tatas click where Ford had failed: (published on Jan 2012)

Business Line : Opinion / Columns : Tatas' unlikely golden goose

Turnaround factors

JLR seems to be preparing itself for such an upbeat scenario. The threatened closure of one of its British plants never happened; the company has since announced plans to expand the workforce at its Solihull plant, and build an engine factory near the city of Wolverhampton, a move that will gradually reduce its dependence on Ford engines. It's in talks over a joint venture in China.

It's easy to look for one reason for this remarkable turnaround, but there are a number of answers. Firstly, Tata Motors wasn't afraid to seek external assistance, bringing in KPMG and Roland Berger Strategy Consultants to design a turnaround for the immediate, medium and short term. In 2009, the company unveiled a business plan, which involved aggressive cost cutting (reducing employee numbers, more efficient IT systems and marketing spend), changes to cash flow management, and a multi-year plan for product launches.

Luckily, there was lots of room for improvement. Ian Fletcher, an automotive analyst at IHS Global Insight, who worked for JLR under Ford, argues that the American firm had a "feast and famine" approach, lavishing cash on JLR at points, while starving it of investment at others. Cash was often directed in unhelpful ways, such as a Jaguar F1 programme.

"If you want to make a profit don't put millions into racing it round a car track," Mr Fletcher says. "You need to build a car that people want and charge what you can get away with."

Restoring 'Cool'

Building a coveted car also proved challenging in the Ford years: its launch of the X-Type — which was known to some in the industry as a "Ford Mondeo with a pretty frock" — was just one example, while others such as the "S" type were seen as overly retro, and unappealing to audiences below the age of 50. (By contrast BMW and Mercedes were able to attract mid to late 30s buyers too).

Under Tata, the XF and XJ updates did much to restore the company's "cool" reputation while the launch of the Discovery in 2009 proved timely for the recovery. Tata Motors' pledge to pump 1.5 billion pounds a year up until 2014, into a total of 40 new product actions — including new vehicles, and updates — has added to that credibility and created a buzz (rumours that it was considering expanding its Halewood plant had observers asking whether it could mean a new compact Jaguar was on the cards).

Part of the problem in the past was too much interference from Ford: something that Tata Motors has reversed. Tata brought in (and retained from Ford days) senior engineers and management, with many years of experience, particularly in the German industry, pretty much leaving them to their own devices, but with the assurance of having the sizable resources and support of the Tata Group behind them.

The CX-16 concept car that wowed audiences at the Frankfurt auto show last year was a case in point. "10 years ago, something with such cutting-edge technology would have been left on the drawing board," says Mr Fletcher.

Niche focus

The trouble with Ford's approach was that it understood and applied volume manufacturing, but not the global niche marketing and product that JLR needed to be successful, and which Tata Motors embraced through its hands-off approach, says Professor Peter Cooke, Professor of Automotive Management at Buckingham University.

"Fundamentally, Jaguar and Land Rover have to be global niche products," he says. Now each product is targeted at specific niche audiences, such as the high-spending city dweller in the case of the Range Rover Evoque, the petit SUV, 15,000 of which have been sold since its launch in September.

As a result, Tata seems to be pushing demand in all the right directions: China is now JLR's third largest and fastest growing market, accounting for around 16 per cent of sales, while demand in Russia, Brazil and India continues to grow.

Overall, with the investment from Tata Motors, JLR was able to position itself in the right space, just in time for the upswing that came in 2009. It is not the only luxury branded car to be doing well: Bentley saw sales rise 37 per cent in 2011, again driven by China, and is preparing for further growth with plans to expand its range.

There are, of course, challenges: currency movements, which have in the past worked well for JLR's profitability, have hurt it in recent months, with the appreciation of the pound against the dollar. As a result, JLR profits for the quarter ending in September fell 2.1 per cent. Moreover, the financial climate will make the quality and timing of its 40 product actions all the more important.

The success of JLR doesn't make or break the case for acquisitions of distressed foreign companies (There is only so much a company can do in the face of unremittingly weakened demand, as has been the case with Tata Steel's European operations). But it does go to show, bad timing is often overrated. After all, had it waited a few months more, Tata Motors would never have secured the financing to acquire the company that has turned out to be its golden goose.
 

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