Latest News | Tata Motors Consolidated Net Loss Widens to Rs 8,444 Cr in Q1
Get latest articles and stories on Latest News at LatestLY. Hit hard by the coronavirus pandemic, homegrown auto major Tata Motors on Friday reported a consolidated net loss of Rs 8,443.98 crore for the first quarter ended June 30, 2020.
Mumbai, Jul 31 (PTI) Hit hard by the coronavirus pandemic, homegrown auto major Tata Motors on Friday reported a consolidated net loss of Rs 8,443.98 crore for the first quarter ended June 30, 2020.
The company had posted a net loss of Rs 3,679.66 crore in the year-ago quarter.
Total income from operations during the period under review stood at Rs 31,983.06 crore as against Rs 61,466.99 crore in the corresponding period of the last fiscal.
On a standalone basis, the company said its net loss for the quarter was at Rs 2,154.24 crore as against a net loss of Rs 147.45 crore in the year-ago period.
Standalone revenue from operations stood at Rs 2,634.14 crore as compared with Rs 13,250.19 crore in the April-June period of 2019-20.
Its wholesales (including exports) decreased 81.5 per cent to 25,294 units during the quarter.
"The COVID-19 pandemic has deeply impacted the auto industry in the first quarter of the current fiscal. Post a calibrated restart at all plants in mid-May, we gradually scaled up our capacity while prudently safeguarding the health and wellbeing of our employees as well as the larger ecosystem," Tata Motors CEO and MD Guenter Butschek said.
Even as the company continues to address the challenges, it sees some disruption due to the intermittent shutdowns and supply chain bottlenecks, he added.
"We have witnessed some green shoots emerging in the passenger vehicle segment owing to some pent up demand pre COVID-19, and are hopeful for a full recovery of the CV (commercial vehicle) industry by end of the fiscal year, with a gradual pickup of demand, aligned to the economic recovery," Butschek said.
The management remains focussed on making the company more agile to improve its market, operational and financial performance by reducing costs, generating free cash flows and providing the best in class customer experience, he added.
The company's British arm Jaguar Land Rover (JLR) reported a 44 per cent dip in net revenue at 2.9 billion pounds during the first quarter.
Its pre-tax loss for the period stood at 413 million pounds as compared to the same period a year ago.
During the quarter, JLR reported a 42.4 per cent decline in its global retail sales at 74,067 units.
"JLR has reacted with resilience and agility to the extraordinary challenges faced in the first three months of financial year 2021 adapting rapidly to the widespread macroeconomic disruption and uncertainty," JLR CEO Ralf Speth said.
Through this period, the company continued to bring outstanding new vehicles to market, electrifying the product range and building the new Land Rover Defender, an icon re-imagined for the digital age, he noted.
"As the lockdowns ease, we will emerge from the pandemic with our most advanced product range yet, and with the financial and operating measures in place to return to long-term sustainable profit," Speth said.
The fundamental strengths of the brand have been tested in 2020, and the company will pass this test to succeed in the future, he added.
Tata Motors noted that outlook remains uncertain for the year with infections continuing to rise and intermittent lockdowns in many countries.
"However, we expect a gradual recovery of demand and supply in the coming months," it added.
In this context, the company is committed to significantly deleverage the business in the coming years and aim to generate positive free cash flows over the last three quarters of the year by focusing on better front end activations of our exciting product range, and executing our cost and cash savings with rigour, Tata Motors said.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)