By Express News Service
MUMBAI: Automaker Tata Motors on Tuesday reported a consolidated net loss for the quarter ended June 2018 at Rs 1,902 crore, as against a net profit of Rs 3,199 crore a year ago.
The unexpected loss, which is also its biggest in the last nine years, comes amid headwinds the company’s cash cow — Jaguar Land Rover (JLR) — is facing in the UK. Over 90 per cent of Tata Motor’s net profit comes from the two iconic British brands — Jaguar and Land Rover.
Jaguar Land Rover’s retail sales grew 5.9 per cent on year during the June quarter to 145,510 units. Of this, retail sales of Land Rover grew to 1,01,386 units, while Jaguar’s grew to 44,124 units.
But sales of the two brands across Europe fell 7 per cent, while sales growth in China, their biggest market, slowed down to just 2.5 per cent.Overall revenues, however, shot up 15 per cent to Rs 67,081 crore, as against Rs 59,818 crore in the corresponding quarter last year.
Last year, in the same quarter the company reported a one-time gain of Rs 3,600 crore after recalibrating the method of calculating pension liabilities at JLR, without which it could have posted losses last year itself.
The quarterly loss was also due to falling sales of its sports utility vehicles F-Pacre and Disovery Sport. “JLR faced multiple challenges including temporary issues like China duty impacts as well as market issues like diesel concerns in the UK and Europe,” said N Chandrasekaran, Chairman, Tata Motors.
Earnings before interest and tax margin in China was negative 3.7 per cent for JLR due to de-stocking, duty change in China, forex revaluation and higher depreciation and amortisation.
On a standalone basis, net profit stood at Rs 1,188 crore, compared with a net loss of Rs 463 crore posted in the same quarter last year. Standalone revenue stood at Rs 16,803 crore, a growth of 62 per cent as against Rs 10,366 crore.
The company’s total (domestic and exports) sales of passenger and commercial vehicles rose 61 per cent year-on-year to 1,76,123 units during the quarter.
The third largest automaker of passenger vehicles in India after Maruti Suzuki and Hyundai, saw its passenger vehicles sales increase to 59,138 units, 48 per cent more units it sold last year.
The company is also the largest domestic maker of commercial vehicles, sales of which shot up 68 per cent to 1,17,123 units.
