Tata Motors Limited's Q4 FY2021 financial earnings came in with quite a surprise. The automaker has reported a consolidated net loss of ₹ 7,605 crore for the quarter ended 31 March 2020 and as compared to the net loss of ₹ 9,894 crore in the year-ago period. The net loss is primarily attributed to a large write off related to subsidiary Jaguar Land Rover. Tata Motors wrote down assets worth ₹ 9,606.1 crore for cancelled models at Jaguar Land Rover (JLR). In-turn, it also endured restructuring costs worth ₹ 5,388.2 crore from JLR.
Tata Motors registered profit on standalone basis.
On standalone basis, the company registered a net profit or profit after tax (PAT) of ₹ 1,646.69 crore as compared to a net loss of ₹ 4,871.05 crore it recorded in the same quarter a year ago. The company's profit before tax (PBT) stood at ₹ 1,690.28 crore as compared to ₹ 4,785.83 crore last year. The automaker's revenue from operations stood at ₹ 88,628 crore in the last quarter, up 41.7 per cent from the revenue of ₹ 62,492 crore recorded a year ago. Its EBIT margin stood at 7.3 per cent.
The consolidated loss is primarily attributed to the write-off of cancelled models from Jaguar Land Rover.
In its statement on outlook, that company said that Q1 FY22 will be adversely impacted due to lockdowns and steel and semi-conductor shortages and it is providing interest support to dealers wherever we are finding excess inventory. Coming to its annual report, the company reported a loss of ₹ 2,396.44 crore even on standalone basis, but still better than the loss of ₹ 7,281.83 crore it recorded a year ago.
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