Jaguar Land Rover announces big increases in revenue and profits
JAGUAR Land Rover has confirmed record sales boosted by strong demand across global markets – especially China, which now accounts for 19% of group sales.
The group said revenue for the full year 2011/12 had increased almost 37% to £13.5bn (2010/11: £9.78bn), a new record for the company. Pre-tax profits also broke last year’s record coming in at £1.5bn (2010/11: £1.115bn).
During the 12-month period, the Indian-owned company sold 314,433 vehicles, up more than 29% on the previous year. Jaguar sold 54,039 cars and Land Rover volumes came in at 260,394, swollen by high demand for the new Range Rover Evoque.
Parent Tata Motors said in addition to new product, the strong demand in China and other developing markets had significantly boosted performance.
The final quarter of the year to March 31, 2012 saw volumes grow more than 48% on the corresponding three months last year. Of these, Jaguar sold 14,118 cars and Land Rover 83,903; sales of the Evoque accounting for 60,217 of the latter.
Sales in China grew to 19% during the period, compared with 12.8% in the corresponding quarter of last year.
Fourth quarter revenues stood at £4.144bn, a growth of 51.5% (2011: £2.735bn), with operating margins at 14.6%. Pre-tax profit came in at £530m (2011: £299m).
Tata said continued strong revenue and profit performance was supported by volume growth, market mix, product mix and favourable exchange rates.
In March this year, JLR successfully raised bonds of £500m, the full proceeds of which will be retained for future investment in the company’s business.
“This was an opportunistic fund raising which enabled JLR reinforce its market acceptance and demonstrated the confidence of the investors while continuing to support steps taken towards strengthening capital structure and extending the debt maturity profile,” said Tata in its results statement.
In March the company also announced it had signed a joint venture agreement with Chery Automobile Company Ltd to build vehicles for the Chinese market. The JV is currently undergoing regulatory approval by the Chinese authorities.
Professor Lord Bhattacharyya, chairman of WMG at the University of Warwick and a personal friend of Tata chairman Ratan Tata, said: “The figures are staggering compared with where JLR was just a few years ago.
“It is all due to Ratan Tata, who still visits every month and oversees investment in the business and the new models.
“He has shown that sometimes you have to have a leap of faith and go with what your instinct tells you.”
