Tata Motors Q3 net falls over 96% to Rs112 cr as JLR volumes plunge

Tata Motors reported consolidated net (after-tax) profit of Rs112 crore for the fiscal third quarter ended 31 December 2016 against a net profit of Rs2,953 crore for the corresponding quarter of the previous fiscal.

Consolidated revenue (net of excise) for the quarter stood at Rs67,484 crore against Rs70,567 crore in the corresponding quarter of the previous fiscal (unfavourable translation impact of Rs10,670 crore).

Consolidated profit before tax for the quarter was Rs599 crore, against Rs3,414 crores for the corresponding quarter last year.

Tata Motors said the third quarter results primarily reflected lower wholesale volumes in Jaguar Land Rover sales despite strong retail sales, which were up 8.5 per cent year-on-year and continued strong demand for the product.

Revenue (in pounds) was up 13.1 per cent y-o-y.

Lower wholesale volumes and relatively weaker product mix (including the run out of Discovery) in Jaguar Land Rover business, overall higher marketing expenses partially offset by credit relating to the recovery because of explosion at the port of Tianjin (China), it said.

Tata Motors said standalone revenues and profit were hit by de-growth in the medium and heavy vehicle (M&HCV) segment and flat LCV segment partially offset growth in the car segment.

Consolidated profit after tax for the quarter was Rs112 crore, against the consolidated profit after tax of Rs2,953 crore for the corresponding quarter last fiscal.

For the nine months ended 31 December 2016, consolidated revenue (net of excise) was Rs1,99,429 crore against Rs1,92,543 crore for the corresponding period last year. Consolidated profit before tax for the nine months ended 31 December 2016 was Rs4,149 crore against Rs8,237 crore for the corresponding period last year.

Consolidated profit after tax (post profit / loss in respect of joint ventures and associate companies) for the nine months ended 31 December 2016 was Rs3,220 crore against Rs6,467 crore for the corresponding period last year.

Commercial vehicle sales during the quarter witnessed demand shrinkage due to the demonetisation, Tata Motors said. The M&HCV segment witnessed major pressure with a fall of 9.0 per cent y-o-y and LCV segment was overall flat. Passenger vehicles segment grew by 25.4 per cent y-o-y with car segment growth of 31.1 per cent y-o-y on the back of continued strong response to the Tiago. Exports grew 34.6 per cent  y-o-y.

Sales (including exports) of commercial and passenger vehicles for the quarter ended 31 December 2016 stood at 132,572 units, a growth of 7.5 per cent, compared to the corresponding quarter last year. Revenues (net of excise) of the standalone business (including joint operations) for the quarter ended 31 December 2016 stood at Rs10,167 crore, compared to Rs10,019 crore for the corresponding quarter last year.

Operating profit (EBITDA) of the standalone business for the quarter stood at Rs153 crore with operating margin at 1.5 per cent. Loss before and after tax for the quarter ended 31 December 2016 was Rs1,032 crore and Rs1,046 crore, respectively, against Rs139 crore and Rs137 crore, respectively, for the corresponding quarter last year.

Revenues (net of excise) of the standalone business for the nine months ended 31 December 2016 stood at Rs30,940 crore compared to Rs30,068 crore in the corresponding period last year. Operating profit (EBITDA) of the standalone business for the nine months stood at Rs1,229 crore with operating margin at 4.0 per cent. Loss before and after tax for the nine months ended 31 December 2016 was Rs1,603 crore and Rs1,651 crore, respectively, against Rs404 crore and Rs460 crore, respectively, for the corresponding period last year.