(Reuters) -India’s Tata Motors reported a 22% drop in third-quarter profit on Wednesday, significantly missing analyst estimates, hurt by weak performance at its Jaguar Land Rover (JLR) and domestic car businesses.
The company’s profit fell to 54.51 billion rupees ($630 million) in the quarter from 70.25 billion rupees a year before.
Analysts were expecting a profit of 67.42 billion rupees, according to data compiled by LSEG.
JLR’s pre-tax profit dropped 12% during the quarter, while the India car business posted a 38% slide in earnings.
Analysts had said high discounts offered by both businesses to boost demand would hurt earnings at the automaker.
JLR accounts for a little over two-thirds of revenue for Tata Motors, and sales of the luxury unit’s pricey Range Rover Sport SUV are a cash cow for its Indian parent. ($1 = 86.5320 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D’Souza)
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