Tata Motors posts Q2 loss of Rs 1,048 cr on dismal JLR sales

Tata Motors posts Q2 loss of Rs 1,048 cr on dismal JLR sales
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Mumbai, Oct 31: Tata Motors has reported a huge consolidated loss of Rs 1,048 crore for the quarter ended September 2018, impacted largely by disappointing performance of Jaguar Land Rover which also reported loss of 101 million pound.
Profit for the September quarter 2017 stood at Rs 2,483 crore. On sequential basis, loss has been widened from Rs 1,902.4 crore in June quarter.
Provision for impairment of capital work-in-progress and intangibles under development (Rs 93.21 crore) and provision for costs of closure of operation of a subsidiary (Rs 437.08 crore) also hit bottomline.
Consolidated revenue from operations during the quarter increased 3.3 percent year-on-year to Rs 72,112 crore driven by domestic sales volume and realisation.
Tata Motors standalone sales volume increased 24.4 percent YoY and 7.9 percent QoQ to 1,90,472 vehicles and JLR sales dropped 10.1 percent YoY and 4.6 percent QoQ to 1,37,665 vehicles.
Numbers missed analyst expectations. Analysts on an average had estimated loss of around Rs 500 crore for the quarter.
Standalone
The company in its standalone business (domestic) reported profit at Rs 109.14 crore for the quarter against loss of Rs 283.4 crore in corresponding period last fiscal, but the same was lower sharply by 91 percent QoQ from Rs 1,187.65 crore in June quarter.
Revenue during the quarter increased by 33.4 percent year-on-year to Rs 17,758.7 crore due to strong sales volume growth of 24.4 percent on new launches.
At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) surged 49.3 percent to Rs 1,097 crore and margin improved by 68 bps to 6.2 percent compared to year-ago.
Jaguar Land Rover
UK-based luxury car maker Jaguar Land Rover has reported a loss of 101 million pound for the quarter ended September 2018 on fall in revenue and weak operating income.
Revenue during the quarter degrew by 11 percent year-on-year to 5,635 million pound in Q2 as retail sales dropped 13.2 percent to 1.29 lakh units and wholesales fell 14.7 percent to 1.3 lakh units with challenging market conditions in China.
Tata Motors is the worst performance stock in auto space, falling 60 percent year-to-date and 17 percent during the September quarter against 27 percent and 10 percent fall in Nifty Auto index respectively.