Tata Motors posts Q2 net loss of Rs 428 cr

Consolidated net sales during the period under review stood at Rs 60,853 crore

Homegrown auto major Tata Motors today reported a consolidated net loss of Rs 427.79 crore due to poor domestic performance and JLR's weaker sales in China, foreign exchange revaluation and higher depreciation and amortisation expenses in the British arm.

The company had reported a consolidated net profit of Rs 3,290.86 crore in the same quarter of the previous fiscal.

Consolidated net sales during the period under review stood at Rs 60,853.03 crore as against Rs 60,163.99 crore in the year-ago period, up 1.14%, the company said in a regulatory filing.

Revenue stood at Rs 49,391.43 crore during the second quarter as against Rs 49,234.84 crore in the year-ago period, 0.31%.

The company said the poor performance was mainly due to weaker China sales and mix, foreign exchange revaluation and higher depreciation and amortisation expenses in the Jaguar Land Rover unit.

"Further, exceptional items for the quarter includes a charge of Rs 2,493 crore on account of the vehicles damaged at Tianjin Port explosion in Jaguar Land Rover business," it said.

The process for finalising an insurance claim may take some months to conclude, so insurance and other potential recoveries will only be recognised in future period when paid or confirmed and have not been recognised in this period.

On a standalone basis, Tata Motors net loss narrowed to Rs 287.47 crore in the September quarter. It had posted a net loss Rs 1,845.63 crore in the year-ago period.

Standalone net sales were at Rs 10,401.43 crore as against Rs 8,657.85 crore in the previous fiscal, it added.

Unit volume sales, including exports of commercial and passenger vehicles for the quarter ended September 30, stood at 1,26,690 units, a decline of 0.4% compared with the corresponding quarter last year, it added.

Tata Motors shares ended at Rs 396.25 on BSE, down 1.87%.