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Tata Motors’ Profit Jumps Near Threefold

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NEW DELHI — Tata Motors Ltd. Monday posted a near threefold increase in quarterly net profit as rising sales at its Jaguar Land Rover Automotive PLC unit and a gain from the sale of investments in four overseas units more than offset anemic demand in its home market of India.

Consolidated net profit of the Mumbai-based auto maker climbed to 48.05 billion rupees ($775 million) in the fiscal third-quarter ended Dec. 31, from 16.28 billion rupees a year earlier. That far exceeded analysts’ expectation of 33.42 billion rupees in a FactSet survey. Sales rose 39% to 635.36 billion rupees.

The company is facing strong headwinds in India because of cutthroat competition in the car and sports-utility vehicle market, and due to a shortage of new products. High ownership costs and fear of job losses in the Indian economy, which is growing at its slowest pace in several years, has also been hurting demand.

However, sales of its British Jaguar Land Rover unit have been rising, helping boost profits.

Sales of Jaguar cars like the XJ and XF, and Land Rover’s Range Rover SUVs, have grown in almost all the major markets globally, especially in China—which is now its single-biggest market.

In the fiscal third-quarter, factory dispatches of JLR vehicles grew 23% to 116,357 autos.

Meanwhile, sale of Tata-branded vehicles fell 36% to 131,087 vehicles, reflecting weak demand in the home market.

The company is hoping the launch of new car models will help drive domestic sales.

Last week, it unveiled the Bolt hatchback and the Zest compact car, its first new car models in four years. These will be sold in India from the second half of 2014.

Tata Motors’ challenges in the Indian market come amid the recent death of its former Managing Director Karl Slym. Mr. Slym, a British national, died last month after falling from the 22nd floor of the Shangri-La hotel in Bangkok in what Thai police have called an apparent suicide.

The company on Friday announced that it has formed a panel to temporarily oversee the operations of the company and to find a successor to Mr. Slym. The nine-member panel of senior executives is headed by Cyrus Mistry, the chairman of India’s Tata Group.

While demand in India remains weak, a gain related to the sale of investments by the company helped its Indian operations post a profit during the fiscal third-quarter.

Net profit at its Indian operations stood at 12.51 billion rupees, compared with a net loss of 4.58 billion a year earlier. The company said it made a pretax profit of 19.48 billion rupees from a continuing restructuring program to sell its investments in four subsidiaries in South Korea, Thailand, Indonesia and South Africa to a wholly-owned unit in Singapore, TML Holdings Pte Ltd.

Profit at JLR more than doubled in the quarter to £619 million from £296 million a year earlier due mainly to higher vehicle sales.

“We continue to see depressed market conditions [in India] for both passenger vehicles and commercial vehicles,” Tata Motors’ chief financial officer C. Ramakrishnan told a news conference in Mumbai. “Competitive intensity also continues to remain high.”

– WALLSTREET JOURNAL

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FCTA Pulls Plugs On Taxi Rank, Terminal Services Contracts

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The Federal Capital Territory Administration (FCTA) has ended contracts with taxi rank and terminal operators due to their failure to meet engagement terms and conditions.

Mr. Ubokutom Nyah, the Mandate Secretary of the Transportation Secretariat, FCTA, made this announcement during a meeting with managers of these terminals and taxi ranks in Abuja.

Nyah clarified that due to the operators’ failure to fulfill their engagement terms, the FCTA had to terminate their contracts.

He instructed them to transfer control of the ranks to the Administration within three months, starting from Nov. 21.

He lamented the presence of unauthorized motor parks in the city and assured the readiness of the Administration to establish proper taxi ranks and terminals in the capital.

He revealed that personally visiting the city’s taxi ranks, terminals, and unauthorized motor parks gave him direct insight into the poor condition of these facilities.

He emphasized that as the federal capital city, Abuja deserves better, highlighting that the poor condition of these facilities attracts various criminal elements.

He said “We must rid Abuja of all these. I have gone round the taxi ranks, and of all the places I visited, not one is worthy to be called even a village motor park.”

The Mandate Secretary stressed that the intention wasn’t punitive; rather, it aimed to revamp the sector, introduce new engagement terms, and modernize taxi ranks and terminals in the federal capital.

He also highlighted the plan to increase the number of terminals and ranks where necessary, which would positively impact the administration’s revenue.

He emphasized that this measure was part of a broader effort to eliminate illegal motor parks in Abuja and curb the associated criminal activities.

In response, Mr. Adebisi Lawal, the Operator of Jahi Taxi Rank, praised the administration’s initiative to modernize the taxi ranks and terminals.

Lawal urged the administration to prioritize current operators’ involvement in the selection of new developers for the modernization of the taxi ranks and terminals.

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Power Show Sees Soldiers Batter LASTMA Officer

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It was a show of power at the Ojota area of Lagos on Monday as soldiers pummeled an officer of the Lagos State Traffic Management Authority, (LASTMA).

Eyewitness accounts claim that the ugly scene played out around 8am, and saw about eight soldiers pounce on the yet to identified LASTMA official, while his colleagues took to their heels.

The video of the melodrama has gone viral, where the LASTMA official was appealing to the soldiers, who appeared bent on ‘teaching him a lesson’.

This onslaught comes on the back of a reported assault of a soldier at the same location by LASTMA officials last week.

It would appear that what played out today was the army asserting its authority and defending their khaki as the armed soldiers carried out what looked like a revenge mission.

Eyewitnesses further averred that the victim was rushed to a nearby hospital, after the soldiers left the scene.

It was gathered that the authorities at LASTMA has reported the incident to the military authorities who are said to be looking into the matter.

Meanwhile many members of the public are rejoicing that the soldiers have taught the crude LASTMA official that power is stronger than power, for all their atrocities against motorists on Lagos roads.

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Intra-City Fares Skyrocket By 98% Month-On-Month – NBS

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Kogi, Ogun, Cross River Propel Mining Sector’s 17.95% Growth – NBS

The impact of the removal of subsidy on Premium Motor Spirit (PMS), otherwise known as petrol, has seen the pump prices of the product skyrocket with a corresponding increase in the cost commercial transportation in Nigeria.

According to the National Bureau of Statistics (NBS), intra-city bus transportation fares across Nigerian cities, measured between May and June 2023, increased from N649.59 to N1,285.41 in June 2023.

This translates to 98 percent growth or N635.82 within the month in view.

The NBS made the data available in its Transport Fare Watch report for June 2023.

In the report, the NBS also shared the breakdown of bus journeys within the cities per drop for constant routes; bus journey intercity (state route); charges per person, amongst others.

On a year-on-year basis, the report has it that bus fares rose by 120.63 percent from N582.61 paid by commuters in June 2022.

The average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023 compared to N4,002.16 in May 2023 indicating an increase of 42.09 percent, month-on-month.

The report read, “The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 per cent from N649.59 in May 2023 to N1,285.41 in June 2023.

On a year-on-year basis, it rose by 120.63 per cent from N582.61 in June 2022.

“In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09 on a month-on-month basis compared to N4,002.16 in May 2023.

“On a year-on-year basis, the fare rose by 55.25 per cent from N3,662.87 in June 2022.”

Biztellers reported that the twin forces of forex pressure and increasing price of Brent in the global market would likely see the pump prices of petrol, increased again in no distant time in Nigeria.

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