Tata Motors reports loss of Rs 10.49 billion on weak JLR sales in Q2

Tata Motors Wednesday reported a consolidated net loss of Rs 10.09 billion for the second quarter ended September 30, 2018, mainly due to a weak performance by its British arm Jaguar Land Rover (JLR).

The company had reported a net profit of Rs 25.0167 billion in the July-September quarter of 2017-18.

Total revenue from operations, however, rose 3.3 per cent to Rs 721.1208 billion as compared to Rs 698.3868 billion in the year-ago period, Tata Motors said in a regulatory filing.

On a standalone basis, the company reported a net profit of Rs 1.0914 billion. It had reported a net loss of Rs 2.8337 billion in the second quarter of 2017-18.
 

Total revenue from operations grew to Rs 177.5869 billion during the quarter from Rs 133.1037 billion in the same period of 2017-18.

Standalone volume rose 25 per cent to 1,90,283 units driven by robust sales of commercial and passenger vehicles.

JLR revenue, however, declined 11 per cent to 5.6 billion pounds.

Commenting on the results, Tata Group Chairman N Chandrasekaran said the Tata Motors' domestic business continued to deliver strong improvement in operational and financial performance by implementing the Turnaround 2.0 strategy effectively.

"We have improved our market shares whilst delivering robust improvement in profitability in both the commercial vehicles and passenger vehicles and generated positive free cash flows," he added.

This strong performance in the face of an intensely competitive market situation augurs well for the future, Chandrasekaran said.

"In JLR, market conditions, particularly in China, have deteriorated further. To weather this volatile external scenario, we have launched a comprehensive turnaround plan to significantly improve our free cash flows and profitability," he added.

The leadership team at JLR is in mission mode to achieve the deliverables under this plan, Chandrasekaran said.

"With these concerted actions we remain committed to deliver an improved all-round performance from H2 FY 19," he added.

Tata Motors shares today settled 0.76 per cent up at Rs 178.65 on BSE.