Tata Group' s Chairman N Chandrasekaran said Tata Motors is making an “earnest effort to turn profitable” after India's largest truckmaker posted standalone losses for four straight quarters.
“I know that from a shareholder's perspective it is disappointing that the company has been unable to pay a dividend in light of its significant losses in the standalone business,” Chandrasekaran said in his address to shareholders at the company's annual general meeting on Tuesday. Tata Motors is working with “tremendous urgency” to remedy the situation, he said while trying to reassure the shareholders.
Chandrasekaran's comments were along the lines of a road map laid out by the automobile maker's management. Tata Motors' Managing Director and Chief Executive Officer Guenter Butschek said on Monday that the company planned to cut costs, focus on new launches and improve supply chain in order to turn the standalone business profitable in the current financial year.
Tata Motors posted a standalone loss of Rs 467 crore in the first quarter ended June. It's overall performance was cushioned by U.K.-based subsidiary Jaguar Land Rover. The company earns 80 percent of its consolidated revenue and entire profit from the luxury carmaker.
“I am optimistic about the future – it may be challenging but at the same time, it offers many positive opportunities for both Tata Motors and Jaguar Land Rover,” Chandrasekaran said.
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