Tata Motors Ltd (TML) reported consolidated net loss of ₹9,894 crore for the March quarter on the back of a steep fall in vehicle sales. The company had posted net profit of ₹1,117 crore in the year-ago period.
The company has made a provision for impairment of passenger vehicle (PV) business as an exceptional item of ₹1,419 crore in its financial statement, which drove the losses in the March quarter.
TML’s consolidated revenue from operations for Q4 was at ₹62,493 crore, down 28% year-on-year (YoY) from ₹86,422 crore in the same period last year.
Revenue from its British luxury car subsidiary, Jaguar Land Rover (JLR), was at ₹50,561 crore, down 22% YoY. JLR, which contributes 75-80% of the company’s total consolidated revenue, was on its way to recovery in the second and third quarters of FY20, soon after which the coronavirus pandemic disrupted major global markets such as the US, Europe and China.
TML’s revenues, in the March quarter, from commercial and passenger vehicle businesses were at ₹7,939 crore, down 49% YoY, and at ₹2,496 crore, down 42% YoY, respectively.
At home, the company’s performance was impacted by an already ailing economy along with the pandemic-led lockdown in March.
TML’s total wholesales for the March quarter were at 101,069 units, down 47% YoY from 192,339 units a year-ago. The India business for the March quarter saw commercial vehicles (CV) sales drop 50% to 69,069 units and PV sales fall 40% YoY to 32,000.
“The auto industry faced strong headwinds in FY20 amidst a slowing economy due to multiple factors – liquidity crisis, high fuel prices, changes in axle load norms and BS6 transition, all leading to weak consumer sentiments and subdued demand across segments. Disruption in the supply chain induced by the pandemic and the nationwide lockdown in mid-March 2020 added to the problems,” said Guenter Butschek, chief executive officer and managing director (CEO & MD) at Tata Motors.
Source: Live Mint