New Delhi, Jun 15 (PTI) Tata Motors on Monday reported a consolidated net loss of Rs 9,863.73 crore for the fourth quarter ended March 31, with the coronavirus pandemic taking a toll on British arm JLR as well as its domestic business.
The company had posted a net profit of Rs 1,108.66 crore in the January-March period of the financial year 2018-19.
The company’s consolidated total revenue from operations stood at Rs 62,492.96 crore in the fourth quarter, compared with Rs 86,422.33 crore in the year-ago corresponding quarter, Tata Motors said in a statement.
On a standalone basis, the company reported a net loss from continuing operations at Rs 4,871.05 crore in the fourth quarter ended March 31, 2020.
It had reported a net profit of Rs 106.19 crore in the corresponding period of 2018-19.
Jaguar Land Rover (JLR) reported a loss of 501 million pounds in the quarter under review, while the revenue was at 5.4 billion pounds.
For the financial year 2019-20, Tata Motors reported a consolidated net loss of Rs 11,975.23 crore, compared with Rs 28,724.20 crore in 2018-19.
Total revenue from operations for the financial year 2019-20 stood at Rs 2,61,067.97 crore, compared with Rs 3,01,938.40 crore in the previous financial year.
For 2019-20, JLR reported a net loss of 422 million pounds while the revenues were at 23 billion pounds.
In India, demand that was already adversely impacted by the general economic slowdown, liquidity stress and stock corrections due to the BS-VI transition, was further affected by the lockdown. Steep volume decline, particularly medium and heavy commercial vehicles, and resulting negative operating leverage impacted profitability and cash flows, Tata Motors said.
As for JLR, the company said that after the British arm’s return to profit in second and third quarters, which reflected improvements achieved through its transformation programme, fourth quarter results were significantly impacted by the coronavirus pandemic.
Tata Motors CEO and MD Guenter Butschek said the auto industry faced strong headwinds in 2019-20 amid a slowing economy due to multiple factors — liquidity crisis, high fuel prices, changes in axle load norms and BS6 transition. The factors led to weak consumer sentiments and subdued demand across segments.
“Disruption in the supply chain induced by the pandemic and the nationwide lockdown in mid-March 2020 added to the problems,” he said.
Butschek further said, “Disappointingly, even with our relentless focus on retail acceleration, ‘Mission Zero’ on BS-IV inventory and stringent cost reduction initiatives, we have not been able to mitigate the impact on our financials. Currently, we are operational at all our plants and at most of the dealerships with a strict adherence to safety and health norms.” PTI MSS RKL