Tata Motors posts biggest quarterly loss of Rs.26,961 crore on JLR woes
- Net profit at Rs. 618 crore versus Rs. 211.6 crore y-o-y
- Revenue rose by 1.5% y-o-y to Rs. 16,207.7 crore from Rs. 15,962.4 crore
- Consolidated: Net loss at Rs. 26,961 crore versus Net profit of Rs. 1,214.6 crore and Revenue rose by 3.8% y-o-y to Rs. 77,001 crore from Rs. 74,156 crore.
Economictimes: Tata Motors posts biggest quarterly loss of Rs.26,961 crore on JLR woes
Auto major Tata Motors on Thursday reported a massive Rs.26,961 crore consolidated loss for the December quarter. The company said it took one-time exceptional non-cash charge for asset impairment of 3.1 billion pounds.
The auto firm had posted a profit of Rs.1,214.60 crore in the year-ago period.
Consolidated revenue for the quarter under review rose 5 per cent YoY to Rs.77,001 crore.
In a filing to the BSE, the automaker said its performance was impacted by challenging market conditions particularly in China and inventory corrections.
The company added that it was taking decisive actions to make the business ‘Fit for Future’ by stepping up competitiveness, reducing costs and improving cash flows.
“We are announcing a non-cash exceptional charge to reduce the book value of our capitalised investments. This accounting adjustment is consistent with the other decisive actions that we must take as part of our ‘Charge’ and Accelerate transformation programmes to create an efficient and resilient business, enabling Jaguar Land Rover to counter the multiple economic, geopolitical, technological and regulatory headwinds presently impacting the automotive industry. We are taking the right decisions now to prepare the company for the new technologies and strong product offensive for the future,” the company said in a release.
The company noted that JLR in January announced its plans to achieve £2.5 billion of investment, working capital and profit improvements by March 2020, and for that suggested a reduction in its global workforce by 4,500 people. This is expected to result in a one-time exceptional redundancy cost of around £200 million, it said.
“The EBIT margin for the full financial year ended March 2019 is expected to be marginally negative which will result in a loss before tax for the year before exceptional items,” the company said on JLR business.
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