Tata Motors Q4 results: Automaker reports surprise net loss of Rs 7,605 cr on $2 bn JLR write-offs

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MUMBAI: at the moment reported a surprise consolidated net loss of Rs 7,605.4 crore for the quarter ended March attributable to a big write off associated to subsidiary Jaguar Land Rover. Analysts had anticipated the automaker to report consolidated net revenue of Rs 3,367.3 crore for the quarter.

In the year-ago quarter, the corporate had reported a consolidated net loss of Rs 9,894.3 crore attributable to comparable write off of belongings in JLR.

The firm wrote down belongings value Rs 9,606.1 crore associated to cancelled fashions at Jaguar Land Rover. Further, it bore restructuring prices value Rs 5,388.2 crore associated to the subsidiary. In summation, the full distinctive loss associated to JLR stood at practically $2 billion within the March quarter.

However, the corporate’s consolidated net loss was restricted by the reversal of Rs 1,182.4 crore in impairments made by the corporate on the finish of the earlier monetary yr associated to its Indian passenger automotive enterprise.

On the topline entrance, the corporate’s efficiency was somewhat upbeat as consolidated revenues within the quarter ended March jumped 42 per cent on-year to Rs 88,628 crore, reflecting the beneficial base impact. In the year-ago quarter, the corporate’s gross sales in India and at JLR suffered attributable to nationwide lockdown at residence, in Europe, the US and China.

The India enterprise reported a 106 per cent year-on-year bounce in revenues to Rs 20,046 crore within the March quarter, whereas gross sales at JLR surged 20.5 per cent to six.5 billion pound sterling.

On the working entrance, the corporate confirmed energy as Jaguar Land Rover reported a 910 foundation factors on-year growth in working margin to fifteen.3 per cent. The luxurious carmaker was in a position to generate free money in extra of 700 million pound sterling, in keeping with its revamped technique.

The India enterprise additionally reported a powerful working efficiency as working margin expanded 1,370 foundation factors on-year to 7.8 per cent regardless of the rise in enter prices. “The auto industry was deeply impacted by Covid-19 in FY21, but witnessed a steady growth in vehicle demand as the nationwide lockdown eased and pent-up demand came to fore supported by a steady recovery of the economy,” mentioned Guenter Butschek, chief government officer and managing director at Tata Motors.

Shares of Tata Motors ended 3.4 per cent increased at Rs 332 on the National Stock Exchange.

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