Tata Motors (NYSE:TTM) reported its latest quarterly earnings figures early on Monday, bringing in a profit that nearly halved when compared to the year-ago quarter, yet TTM stock surged more than 5%.
The India-based carmaker said that for its fourth quarter of fiscal 2019, it posted net income of INR1,117.48 crore ($160 million), marking a 47% decline when compared to the year-ago quarter. On a per-share basis, this figure was INR3.28, which marked a slide of 47.4% year-over-year.
Tata Motors’ results were negatively impacted by asset impairment at Jaguar Land Rover, as well as separation costs–the company also faced challenges in China with its Jaguar Land Rover sales. Nevertheless, the company’s results topped expectations.
The business revealed that its total consolidated revenues fell 4% year-over-year to INR86,422.02 crore ($12.37 billion), while revenue from the Tata Motors Limited (TML) segment increased 3.7%, while revenue at JLR fell 5.2%. Total volumes were down roughly 8.2% year-over-year to 357,219 units.
The automotive manufacturer is hoping to reverse its fortunes in China as the company has struggled in the country, making such turnaround efforts its priority. The brand is also looking to lower breakeven and improve cashflows.
In Jaguar Land Rover, the company did see higher sales in the UK and U.S., which have contributed to revenues growth. The company also invested GBP3.8 billion in product development, new technologies, as well as a desire to streamline the product creation process.
TTM stock is up about 5.7% on Monday.