TATA MOTORS REPORTS ₹7,585 CR CONSOLIDATED LOSS IN MAR QTR
NEW DELHI: Tata Motors Ltd posted a consolidated loss of ₹7,585.34 crore in the March quarter, mainly because its UK unit Jaguar Land Rover (JLR) wrote off investments worth ₹15,000 crore during the period.
The figure is, however, narrower than the ₹9,863.75 crore loss a year ago as Tata Motors and JLR reported robust sales during the period.
In February, JLR announced its decision to write off its investments that were earmarked for developing internal combustion vehicles, which became unviable after the automaker’s move to pivot towards electric vehicle technology.
A Bloomberg survey of analysts predicted Tata Motors to report a profit of ₹2,774.10 crore in the three months ended March 31.
The Mumbai-based automaker reported a strong recovery in its operating performance in the fiscal fourth quarter, backed by higher sales of JLR vehicles in key markets like China and the US.
Tata Motors, however, does not expect the growth momentum to continue in this fiscal first and second quarters as vehicle production is likely to be hit by a global shortage of semi-conductors, a critical component in modern vehicles.
An explosive surge in Covid-19 infections in India will also adversely hit the company’s performance in its home market, with sales of its commercial and passenger vehicles expected to stay subdued in the coming months. P. Balaji, chief financial officer of Tata Motors, said the increase in Covid vaccinations in China, the US and the UK has led to robust demand for JLR vehicles in these important markets, leading to an overall expansion in the company’s order book.
On a consolidated basis, Tata Motors’ revenue jumped 41.8% to ₹88,627.9 crore, thanks to the recovery in vehicle sales.