Tata Motors has come out with the number for the first quarter of Financial Year 2019-20, reporting a massive loss of Rs. 3,679.66 crore for...
Tata Motors has come out with the number for the first quarter of Financial Year 2019-20, reporting a massive loss of Rs. 3,679.66 crore for the quarter which ended on June 30. The company's losses have nearly doubled from last year when the company reported a loss of Rs. 1,902.37 crore during the same quarter. Tata Motors' total revenue for Q1 FY2019-20 stood at Rs. 60,830.16 crore, going down by almost 8 per cent year-on-year basis and 29% sequentially. In comparison, the company's total revenue for the same quarter in Financial Year 2018-19 stood at Rs. 65,956.78 crore.
This major loss can be mainly attributed to Tata Motors-owned Jaguar Land Rover (JLR), which reported a pre-tax loss of GBP 395 million (Rs. 3,395 crore) in Q1, against the 264 million pound loss announced during the same period last financial year. The company reported total revenue of GBP 1.5 billion (Rs. 12,895 crore) which fell by 2.8 per cent. The unit's retail sales for the quarter stood at 1,28,615 units with good demand for Jaguar I-PACE and new Range Rover Evoque.
Also Read: Tata Motors Global Wholesales Down By 5 Per Cent
Tata Motors-owned Jaguar Land Rover reported a pre-tax loss of GBP 395 million (Rs. 3,395 crore) in Q1
The company said that the lower revenue was mainly due to weaker market conditions, plant shutdown time and delays in WLTP certification resulting from Brexit contingency planning, leading to lower sales and profits. However, JLR did reiterate that its financial results will improve over the balance of the year and continues to target a 3 to 4 per cent EBIT margin for the full year with continued investment resulting in negative but improving cash flow.
JLR Chief Executive Ralf Speth said, "Despite challenging conditions in the first quarter, Jaguar Land Rover is creating a more robust and resilient business, in which we will continue to deliver a strong pipeline of products that our customers will love. Breakthrough products such as the exciting all-new Land Rover Defender will pave the way for a sustainable profitable growth"
As for Tata Motors' standalone numbers, revenue for the quarter decreased by 19.9 per cent to Rs. 13,352 crore. Pre-tax loss (before exceptional items) was at Rs. 40 crore (against a pre-tax profit of Rs. 1464 crore in Q1FY'19) due to negative operating leverage and lower other income including dividend. Loss after tax for the quarter stood at Rs. 97 crore. The company said, "Tata Motors Group financial performance reflects the historical seasonality and continued challenging market conditions globally."
In the last quarter Tata Motors' total wholesales de-grew by 22.7 per cent to 136,705, while in the domestic market, sales declined by 20.5 per cent. The company's retail sales also fell by 12.6 6 per cent. The commercial vehicle segment saw a de-growth of 19.5 per cent, while the passenger vehicle segment fell by 30.1 per cent.
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