Tata Motors sees 25.5% drop in Q3 profit; even JLR dips

Shares of Tata Motors slumped over six per cent on Friday after the company reported a 25.5 per cent drop in consolidated net profit for the December quarter.

Tata Motors had earlier reported 25.5 per cent drop in consolidated net profit at Rs3,581 crore for the quarter ended 31 December due to massive loss in domestic business and a marginal dip in profits of its British luxury car arm Jaguar-Land Rover, which has been sustaining its bottom-line.

The company had posted consolidated net profit of Rs4,804.8 crore in the same quarter of the previous year.

On a standalone basis, Tata Motors India reported a massive net loss of Rs2,122.72 crore as against a profit of Rs1,251.4 crore in the same period a year ago.

The company said that it is cautiously optimistic about cash flow at JLR next year due to a massive capital expenditure of £3.8 billion involving its China venture and other expansion in Britain, where the company is setting up a new engine facility, and in Brazil.

After many quarters of robust bottomline growth, its marquee British arm JLR too reported a marginal dip in net income at £593 million from £619 million.