Tata Motors net loss widens to Rs 307 crore, revenue plunges 18 per cent in September quarter

NEW DELHI: Tata Motors on Tuesday posted a loss for a third straight quarter. The company’s consolidated net loss in the quarter ending September, 2020 grew to Rs 307 crore as against a loss of Rs 188 crore in the same quarter last year. It had posted a consolidated net loss of Rs 8,437.99 crore for the quarter ended June 30. 

The auto major’s consolidated revenue from operations fell 18 per cent to Rs 53,530 crore in Q2FY21 as against Rs 65,432 crore in the year-ago period. However, the company’s luxury unit Jaguar Land Rover (JLR) returned to profit with significant positive cash flow in the quarter. JLR generated a 65 million pound profit before tax in the second quarter as against a loss of 413 million pound in the last quarter. 

JLR’s retail sales stood at 113,569 units during quarter, up 53.3 per cent Q-o-Q but down 11.9 per cent on-year. “Although JLR is not immune to the headwinds impacting the global automotive industry, it has the foundations in place to generate long-term sustainable profitability.

I am confident these qualities and a strong product strategy with a focus on financial discipline will equip Jaguar Land Rover to address challenges in the period ahead,” said Thierry Bolloré, CEO  of Jaguar Land Rover.

The passenger vehicle business in India witnessed a  significant recovery in the last one quarter. Its commercial vehicle (CV) sales remained in the negative territory but it looks forward to a gradual pick up in demand. “We remain hopeful for a full recovery in the CV industry by the end of this fiscal year aligned to the overall improvement in the economy,” Guenter Butschek, CEO and MD, Tata Motors, said.