Tata Motors net profit falls 16.8%
Tata Motors Ltd on Tuesday said its consolidated net profit for the March quarter fell 16.8% from a year ago due to translation impact from the British pound to the rupee.
Consolidated net profit for the quarter stood at ₹4,336 crore against ₹5,211 crore. Revenues for the quarter fell 2.9% to ₹77,272 crore from ₹79,549 crore in the previous year.
A Bloomberg poll of 23 analysts each for net sales and profit estimated the Mumbai-headquartered firm to report net sales of ₹78,797 crore and net profit of ₹2,575.9 crore.
On a standalone basis, the company reported a net loss to ₹829.04 crore against net profit of ₹397.95 crore. Total income rose 6.7% from a year ago to ₹15,092.44 crore against ₹14,147.98 crore.
The company said, “It has been a challenging as well as a highly volatile year, which followed a period of low demand and inconsistent recovery in the prior years in the automotive sector in India.
“In addition, the company also under-performed on many fronts, amplifying the impact of the external environment. On the way forward, we have detailed actions under focused implementation, and expect to significantly enhance the overall business performance in the coming periods.”
Driven by a strong volume across most of the markets, including the UK, the US, Europe and China, retail volumes (sales to customers) at the maker of Jaguar sedans and Land Rover sports utility vehicles rose 13% to 179,509 units in the three months to March over the yearago period.
Meanwhile, earnings from the India operations, which had been on the path to recovery, were singed by the one-time hit that the company took on account of its switch to stricter emission norms from Bharat Stage III to IV.