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What: Shares of India's largest automaker, Tata Motors (NYSE: TTM ) , jammed on the gas and bolted ahead as much as 13% in intraday trading, as investors reveled in the company's earnings report.
So what: Profit of just more than $500 million on revenue of roughly $6.5 billion beat analysts' estimates, as the automaker benefitted from a strong sales environment. Revenue jumped 37% from a year ago, while the bottom line saw a 10-fold increase. The company noted in particular that its Jaguar and Land Rover lines -- purchased from Ford (NYSE: F ) for $2.3 billion in 2008 -- have started to turn around; the unit posted a $384 million profit.
Now what: Even investors with little interest in foreign investments are likely familiar with the growthy expectations for India, which is part of the well-known BRIC quartet. That is a major tailwind behind a company like Tata, even if it still has to tangle with foreign competitors. Looking ahead, the good times on the India auto front may continue into the fourth quarter. The Wall Street Journal reported today that Indian auto sales in October were hopping, as new models and low borrowing costs enticed buyers. October sales totaled 182,992, up 38% from a year ago.
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