Things are looking very good on the balance sheet of Britain’s best loved business maker Jaguar Land Rover.
In fact business is looking so good that parent Tata Motors said last night it will be investing £2 Billion in new models.
The U.K.-based Jaguar Land Rover unit accounted for a big chunk of Tata’s profit over the past year, including pretax income of £530 million in the fiscal fourth quarter ended March 31.
JLR earned £299 million in the same period of 2011. The unit’s revenue soared 52% to £4.1 billion as sales advanced 48% to 98,000 vehicles.
Analysts were disappointed that JLR’s operating margin narrowed to 14.6% in the latest quarter from 17% in the three months ended Dec. 31. The unit attributes the margin decline to the expense of training new workers and higher marketing costs.
Tata posted net earnings of 62 billion rupees in the fourth quarter compared with 26 billion rupees a year earlier. Revenue climbed 44% to 509 billion rupees on sales of 268,100 passenger and commercial vehicles.
For the full fiscal year, JLR pretax profit jumped 34% to a record £1.5 billion Revenue rose 37% to £13.5 billion Sales grew 29% to a record 314,400 vehicles, including a 76% surge to 51,000 units in China.
Tata netted 135 billion rupees for the year, up 47% from the previous year. Revenue increased 36% to 1.7 trillion rupees on sales of 863,200 vehicles.