Tata Motors Posts Record Profit


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The maker of the Nano minicar and the owner of the luxury car brand Jaguar, India's Tata Motors (NYSE: TTM ), announced record profit this week as its stock hit a new high. The Indian car manufacturer said that its earnings were $497 million in the quarter, up from $4.9 million last year, and that its sales increased +37% to $6.4 billion.

The company attributed its gains to strong volume growth across its entire line of cars, trucks and buses as well as a surge of interest in its Jaguar Land Rover luxury unit. Commercial vehicle sales increased +23% while passenger vehicle sales rose +36%. The company's signature car, the Nano subcompact, sold +53% more units than it did in the third quarter of last year.

The company has been involved in a bit of a public relations snafu recently due to reports of fire problems with the Nano. The company reacted swiftly to the news and announced that it will offer free safety upgrades to customers (it chose this over a recall). Tata will begin contacting customers in the next few weeks about installing new catalytic converter covers as well as making other safety upgrades.

Tata Motors is up +8.4% this week on its positive quarterly results. The stock closed at a record high Wednesday and, despite yesterday's pullback, remains on a good clip. In total, shares are up +26% Oct. 4. Buy this stock under $34.25 a share.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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Louis Navellier

Louis Navellier

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