New Delhi: Tata Motors on Monday reported a consolidated loss of INR 4450.12 crore ($598.04 million) for the quarter ended June 30, compared with a loss of INR 8443.98 crore during the same period last year.
The automaker recorded its total revenue from operations in Q1 at INR 66,406.05 crore, up 107.6% as against INR 31,983.06 crore, the company said in a regulatory filing.
Tata Motor’s British arm Jaguar Land Rover (JLR) posted revenue of GBP 5 billion in the first quarter, 73.7% more than in the Q1of the previous year.
JLR retail sales in the first quarter were 1,24,537 vehicles, up 68.1% year-on-year as sales continued to recover from the impact of the pandemic, but shortage of semiconductor supplies constrained production.
Thierry Bolloré, CEO, JLR, said, “We are pleased to see a continuing positive recovery from the pandemic, with year-on-year growth in all regions, demonstrating the appeal of Jaguar and Land Rover vehicles. Though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control and ensure that Jaguar Land Rover is well-placed to respond to any further market developments.”
In the near term, we remain focused on fulfilling customer demands while driving all levers of the business to mitigate the unprecedented commodity inflation. Looking beyond the short-term challenges, we see significant opportunities to leverage the mega trends shaping the Indian automotive industry.Girish Wagh, Executive Director, Tata Motors Ltd
On a standalone basis, Tata Motors said its continuing business posted a net loss of INR 1,320.74 crore, as against a net loss of INR 2,190.64 crore in the year ago period.
The standalone total revenue from operations stood at INR 11,904.19 crore as against INR 2,686.87 crore in the same period a year ago.
Girish Wagh, executive director, Tata Motors Ltd, said, “In the near term, we remain focused on fulfilling customer demands while driving all levers of the business to mitigate the unprecedented commodity inflation. Looking beyond the short-term challenges, we see significant opportunities to leverage the mega trends shaping the Indian automotive industry.
“We are working to transform the customer experience digitally and also strengthen our lead in sustainable mobility. We will continue to make the requisite investments to ensure a competitive product portfolio whilst driving down the cash break-evens of the business to deliver consistent, competitive and cash accretive growth over the medium to long term,” he added.
The Indian operations narrowed their pre-tax loss before exceptional items to INR 1,289 crore from INR 2,141 crore in the year-ago quarter. The India business’ EBITDA margin expanded 3,110 basis points year-on-year to 1.8%.
Going forward, the automaker said that the demand remains strong for JLR and India PV while CV demand is showing gradual improvement. “In this dynamic business environment, we anticipate that semiconductor issues, commodity inflation and pandemic uncertainty will have an impact in the short term,” Tata Motors said.
“We expect the performance to improve progressively from H2 as supply chain and pandemic situation improves. The business has demonstrated strong resilience in the face of adversity and its fundamentals are strong. We will remain agile to address these challenges and drive consistent, competitive and cash accretive growth over the medium to long term whilst deleveraging the business to near zero automotive debt by FY24,” the automaker said.
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Hyundai, which together with affiliate Kia Corp is among the world’s 10 biggest automakers by sales, reported net profit of 1.8 trillion won ($1.57 billion) for April-June versus 227 billion won in the same period a year earlier.
