TaMo bets on demand as core profit doubles

The firm expects strong H2 driven by GST benefits and spending growth

- Ayaan Kartik

Tata Motors Ltd is looking to build on sales momentum in the second half of the financial year after profit from its core commercial vehicle business more than doubled in the September quarter.

The country’s largest commercial vehiclemaker swung into a consolidated loss of ₹867 crore in the July-September period from a profit of ₹498 crore a year earlier as it recorded a loss of ₹2,027 crore, according to its exchange filing. The loss was driven by a decline in the valuation of its investments in Tata Capital Ltd. Shares of Tata Motors’ group peer have fallen 2% since listing in October.

Adjusting for the Tata Capital investment, net profit came at ₹1,159 crore, more than double of ₹498 crore the company recorded a year earlier.