Tata Motors reports Rs26,961-cr consolidated Q3 loss
07 February 2019
Auto major Tata Motors on Thursday reported a massive Rs26,961 crore consolidated loss for the October-December 2018-19 quarter, hit by falling revenue from its British arm Jaguar Land Rover.
Tata Motors had posted a net profit of Rs1,214.60 crore in the year-ago quarter. Consolidated revenue for the quarter rose 5 per cent YoY to Rs77,001 crore.
In a filing with the BSE, the automaker said its performance was impacted by challenging market conditions particularly in China and inventory corrections.
Tata Motors said it took one-time exceptional non-cash charge for asset impairment of 3.1 billion pounds.
The company added that it was taking decisive actions to make the business 'Fit for Future' by stepping up competitiveness, reducing costs and improving cash flows.
Consolidated net revenue for the quarter stood at Rs77,001 crore, up 5 per cent from the previous year quarter. Domestic delivers saw robust profitable growth. Domestic revenue at Rs16,208 crore for the quarter was up 1.5 per cent, it said, adding that its market shares for CVs was up 60 bps compared to FY 18 while sales of personal vehicles were up 50bps.
Net (after-tax) profit stood at Rs618 crore while earnings before interest, tax, dividend and amortisation (EBITDA) stood at Rs1,468 crore.
Tata Motors launched the much-awaited Tata Harrier during the quarter while smaller SUV Tata Nexon achieved ‘5 star’ Global NCAP rating for safety.
Tata Motors said Jaguar Land Rover performance was impacted by corrective action in China and production shutdown.
JLR revenue at £ 6.2 billion was down 1.4 per cent while net profit stood at £3,129 million. JLR reported EBITDA of £ 455m (up 7.3 per cent) and EBIT at -2.6 per cent.
JLR performance impacted by challenging market conditions particularly in China and inventory corrections. Tata Motors said it will continue to invest in exciting products and leading edge technologies. Taking decisive actions to make the business Fit for Future by stepping up competitiveness, reducing costs and improving cash flows.
“Tata Motors domestic business continues the strong momentum and has delivered market share gains as well as profitable growth. The Turnaround 2.0 strategy is delivering well with a continuing portfolio of product launches, which are the requisite building blocks for sustainable growth,” chairman N Chandrasekaran commented.
“In JLR, the market conditions continue to be challenging particularly in China. The company has taken decisive steps to step up competitiveness, reduce the costs and improve the cash flows while continuing to invest in exciting products and leading edge technologies. With these interventions, we are building Tata Motors group to deliver strong results in the medium term,” he added.
“Fiscal year 2019 so far has been a challenging period for the industry. Despite the muted growth, Tata Motors has delivered strong results, registered an impressive profitable growth this year on the back of exciting products, renewed brand positioning and aggressive cost reduction. Our business performance is well on track – thanks to the turnaround momentum in the Company. We are committed to our core objectives of winning decisively in CVs, sustainably in PVs and proactively in EVs. Our aspirations for the future will only grow to surpass customers’ expectations,” Guenter Butschek, CEO and MD, Tata Motors, said.
Jaguar Land Rover said it continued to invest in exciting products, electrification, and technology. The company launched the all new Range Rover Evoque and the new Land Rover Defender will be revealed later this year.
The company is in track with investment in electrification with Electric Drive Units to be produced at the Engine Manufacturing Centre and a new Battery Assembly Centre to be established in the UK, it added.