ET Markets
12,248.2567.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Tata Motors reports lower-than-expected loss at Rs 217 crore, margins improve to 12.4%

Consolidated revenue of the company declined 9.15 per cent to Rs 64,763.39 crore YoY.

ETMarkets.com|
Updated: Oct 25, 2019, 05.40 PM IST
0Comments
Tata Motors Q2 loss narrows to Rs 217 crore; JLR puts up a good show
Tata Motors Q2 loss narrows to Rs 217 crore; JLR puts up a good show
Auto major Tata Motors on Friday posted a consolidated loss of Rs 216.56 crore for the quarter ended September 30 against a loss of Rs 1,048.80 crore in the same period last year.

Analysts in an ET Now poll had projected a loss of Rs 1,500 crore.

Consolidated revenue of the company declined 9.15 per cent to Rs 64,763.39 crore during the quarter under review against Rs 71,292.79 crore last year.

EBITDA margins improved by 250 basis points to 12.4 per cent.

The profit before tax of its luxury unit Jaguar Land Rover (JLR) stood at 156 million pounds.

“Jaguar Land Rover has improved its performance this quarter and delivered a well-rounded performance. In particular, the improvement in China on the back of better operational metrics is reassuring,” Tata Motors said in a release.

It further added that the auto industry in India witnessed a sharp decline in both commercial and passenger vehicles resulting in a disappointing break to the rhythmic delivery of the company’s turnaround journey of the last two years.

“The profitability was impacted by adverse mix from the steep decline in M&HCV volumes and loss of operating leverage as we proactively focused on retails and reduced system stocks to secure dealer viability. Though the near-term market situation is fluid, we are optimistic on medium-term outlook of this market and will continue to drive our turnaround strategy and transition seamlessly to BSVI,” Tata Motors added.

Guenter Butschek, CEO and MD of Tata Motors said that the Industry was grappling with a long and sharp slowdown.

“Growth continues to be impacted by subdued demand, higher capacity from the new axle load norms, liquidity stress, low freight availability, weak consumer sentiment and general economic slowdown. The sharp market decline over the last few months has impacted our Q2 performance as well which is disappointing. With the onset of festive season, we are seeing initial green shoots this month with better retails in passenger vehicles,” he added.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service