Tata Motors Ltd, India's biggest automaker by revenue, reported a surprise drop in quarterly earnings on May 26, hit by higher costs and lower profit at its luxury Jaguar Land Rover unit. The company's consolidated net profit fell 56 percent to 17.17 billion rupees ($268.3 million) for the fiscal fourth quarter to March 31, from 39.18 billion rupees a year earlier.
Analysts had on average expected a net profit of 40.95 billion rupees, according to data compiled by Thomson Reuters.
Consolidated net sales, however, rose 4 percent to 672.98 billion rupees.
A fall in sales of its sleek Jaguar saloons and sporty Range Rovers in its key Chinese market meant lower profit at Tata Motors' luxury unit, that has propped up profits at the Indian automaker over the last few years.
The luxury unit's profit fell to 302 million pounds ($465.3 million) for the March quarter from 449 million pounds a year ago earlier.
Losses at Tata Motor's standalone unit, which mostly comprises its Indian business, widened to 11.64 billion rupees from 8.17 billion rupees a year earlier.
Tata Motors has been trying to turn around its domestic business. In the year to end-March it launched two new cars, a compact sedan Zest and a hatchback Bolt, aimed at attracting young buyers.
That pushed up passenger vehicle sales in India by 19 percent during the quarter, the company said in a statement.