Second-quarter profits increase 45% to more than £500m, largely due to popularity of Range Rover Evoque in China
Jaguar Land Rover (JLR) has reported a 45% increase in second-quarter profits to well over £500m, driven by soaring demand from China for the new Range Rover Evoque.
The British-based company, now under the control of Tata Motors of India, saw a 91% increase in overall sales from the luxury car-hungry Chinese market year-on-year.
The profile of the Range Rover Evoque has been boosted by a special edition designed in collaboration with Victoria Beckham.
Overall, JLR sales rose 34% to 83,452 vehicles, with nearly 72,000 made up of Land Rovers compared to less than 12,000 Jaguar saloon cars in the three months to 30 June.
Sales from China comprised 22.2% of total volumes for the quarter ended 30 June, 2012, as against 15.7% for the corresponding period of 2011.
Revenues for the quarter hit £3.6bn, a growth of 35%, while operating margins stood at 14.5% and an operating profit (EBITDA) of £527m in the quarter, a growth of 45.6% more than £362m was recorded.
“Continued strong revenue and operating profit performance were supported by demand for new products, improved market mix and favourable exchange rate environment,” said the company.
JLR has declared a dividend of £150m, which went to Tata Motors, whose wider business was hit by a slowdown in its home market of India and a depreciation of the rupee. The wider group reported a consolidated profit, before tax, up 34% but net income rose only 12%.
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