An ET Now survey had projected a net loss of 2.3 billion rupees.
Total revenue from the automaker’s operations was down 18.19 percent to Rs 53,530 crore, from 65,431.95 crore a year ago.
The company said its revenue in the six months ending Sept. 30 suffered as the group’s manufacturing plants and offices had to be closed for a considerable period of time due to the Covid-19 pandemic.
“The lockdowns have had an operational impact on the company, including on supply chain issues. The company is closely monitoring the situation taking into account directives from governments. Additionally, the Reserve Bank of India (RBI) has announced a moratorium on loan repayments for specific borrower segments, which affects the Group’s vehicle finance business in India, ”said Tata Motors.
“Management believes that it has taken into account all possible impacts of known events arising from the Covid-19 pandemic in preparing the financial results, including but not limited to its assessment of the liquidity and going concern of the Group, the recoverable values of its property, plant and equipment, intangible assets, intangible assets under development, provision for losses on financial accounts receivable and the net realizable values of other assets ”, he added.
The automaker said its Jaguar Land Rover (JLR) unit returned to profit with significant positive cash flow in the quarter as sales and revenue recovered from the impact of Covid-19 in the first fiscal quarter, but remain. below one-year pre-Covid levels. does.
JLR’s retail sales of 113,569 units were up 53.3% QoQ (QoQ) with almost all retailers now open, but retail sales in most markets continued to be affected by Covid-19 and thus fell 11.9% in total. year with year.
That said, sales from China were particularly encouraging, up 14.6 percent from the previous quarter and 3.7 percent year-on-year.
“While Jaguar Land Rover is not immune to the headwinds impacting the global automotive industry, it has the foundation to generate long-term sustainable profitability,” said JLR CEO Thierry Bolloré.
For Tata Motors, the passenger vehicle (PV) segment continued its strong growth momentum in the quarter and commercial vehicles (CV) witnessed gradual improvement across all segments.
The company said the PV segment achieved EBITDA balance led by strong customer attraction for its ‘NEW FOREVER’ range, while CV profitability improved sequentially but continues to be affected by lower volumes and an adverse mix in year-on-year terms.
For the company as a whole, despite concerns about the risk of a second wave of infection in many countries and other geopolitical risks, Tata Motors expects a gradual recovery in supply and demand in the coming months.
“In this context, we are committed to achieving near-zero net auto debt in the coming years by focusing on better front-end activations of our exciting product range and executing our cost and cash savings rigorously,” it said in a statement.
“At PV, we accelerated the momentum built in Q1FY21 and saw demand gradually emerge in select CV segments. We remain hopeful for a full recovery in the CV industry by the end of this fiscal year in line with the overall improvement in the economy, “said Guenter Butschek, CEO and CEO of Tata Motors.
“During the quarter, we met the planned improvements in our operating and financial performance. We reiterate our commitment to make Tata Motors more agile by reducing costs, generating free cash flows and providing the best customer experience in its class, “he added.
The company’s finance costs increased by Rs 114 crore to Rs 1,950 crore in the quarter due to higher gross loans.
For the quarter, net profit from joint ventures and associates amounted to Rs 36 crore compared to a loss of Rs 363 crore in the previous year.
The Tata Motors and JLR businesses generated cash flows of Rs 2.3 billion and £ 463 million in the quarter.
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