Tata Motors Net Loss Widens To Rs 3,698 Crore In June Quarter

Tata Motors on Thursday reported that its net loss widened to Rs 3,698.34 crore in the quarter ended June 30 from Rs 1,902.37 crore in the corresponding period a year ago. In a regulatory filing after market hours, Tata Motors said its revenue stood at Rs 60,830.16 crore in the quarter ended June 30, down 29 per cent on a year-on-year basis. Analysts had on an average expected Tata Motors to post a loss of Rs 1,938 crore for the quarter, news agency Reuters reported citing Refinitiv data.

Tata Motors reported a net loss of 402 million pounds for its luxury carmaker Jaguar Land Rover in the three-month period. It said JLR's performance reflects the impact of seasonality in the backdrop of weak markets.

"The continued slowdown across the auto industry due to weak consumer sentiments, liquidity stress and the impact of axle load effect particularly in medium/heavy duty, impacted overall demand," said Guenter Butschek, CEO and managing director, Tata Motors.

"Over the past few years we had struck a good balance between managing market dynamics and financial health... With the budget announcement and upcoming festive season, we expect some tailwinds for the remaining FY20."

With industry volumes down in most regions, Jaguar Land Rover reported a decline of 11.6 per cent in global retail sales to 1,28,615 vehicles in the June quarter, Tata Motors said.

"Jaguar Land Rover is in a period of major transformation. We are simplifying our business, delivering on our product strategy and adapting to the tough market environment. We will build on our strong foundations and increased operating efficiency to return to profit this fiscal year," said Ralf Speth, chief executive, Jaguar Land Rover.

The net revenue of Jaguar Land Rover, Britain's biggest automaker, declined 2.8 per cent to 5.1 billion pounds, according to the regulatory filing.

"Furthermore, our Turnaround actions are in full swing and will provide us a great level of confidence to master this unprecedented market challenge and we will get out of it even stronger," Mr Butschek added.

Shares in Tata Motors closed 4.56 per cent lower at Rs 144.35 apiece on the BSE, underperforming the benchmark Sensex index which finished 0.04 per cent lower - its sixth straight day of fall.

For the quarter ended March 31, Tata Motors had posted a net profit of Rs 1,117.48 crore, marking a decline of 47.42 per cent compared to the corresponding period a year ago. It, however, posted a net loss of Rs 28,826.23 crore for the financial year 2018-19.