Tata Motors Ltd., the owner of Jaguar Land Rover, rose to the highest in at least 19 years in Mumbai trading after saying second-quarter profit jumped on demand for luxury sedans and sport-utility vehicles.
The shares climbed 4.8 percent to 1,331 rupees, the highest since at least January 1991, as of 10:27 a.m. local time. The automaker has surged 68 percent this year, more than triple the gain in the Bombay Stock Exchange’s benchmark Sensitive Index.
“The global demand for luxury cars remains strong, especially in China,” said Umesh Karne, an analyst at Mumbai- based BRICS Securities. “Even from these levels, we expect better sales, especially at Jaguar Land Rover.”
Group net income, including Jaguar Land Rover, rose to 22.2 billion rupees ($500 million) in the three months through September, from 218 million rupees a year earlier, the Mumbai- based company said yesterday. Profit beat the 17.1 billion-rupee average of 10 analyst estimates compiled by Bloomberg. Sales rose 36 percent to 287.8 billion rupees.
Jaguar Land Rover profit was 238.1 million pounds ($381 million) in the second quarter, compared with a loss of 60.4 million pounds a year earlier, Tata said yesterday after the market closed.
Excluding Jaguar Land Rover and certain other units, profit declined 41 percent to 4.33 billion rupees, trailing the 5.14 billion-rupee average estimate of 19 analysts. The year-earlier figure included a one-time gain from a share sale.
