Tata Motors Q1 loss at Rs 3,680 crore, revenue dips 8%, JLR disappoints

The company's flagship arm Jaguar Land Rover reported a pre-tax loss of £395 million, compared to £264 million loss in the same period a year ago

Tata Motors on Thursday reported a consolidated net loss of Rs 3,679.66 crore for June quarter of the financial year 2019-20 (FY20) as against a loss of Rs 1,862.57 crore registered in the year-ago period. Total revenue from operations came in at Rs 61,467 crore, down 7.84 per cent year-on-year (YoY). 

The company stated that Q1 was impacted by demand slowdown, higher axle loads, liquidity stress, low freight availability for cargo operators.

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EBITDA (earnings before interest, tax, depreciation and amortisation) slipped 130 basis points (bps) YoY to 6.2 per cent, while EBIT margin plunged 170 bps to a negative 2.5 per cent. 

JLR's performance disappoints

Retail sales (including CJLR) fell 11.6 per cent to 128,615 units, while wholesales (including CJLR) dropped 9.9 per cent to 118,550 in Q1FY20. The company's flagship arm Jaguar Land Rover (JLR) reported a pre-tax loss of £395 million, as compared to £264 million loss in the same period a year ago, on quarterly revenues that declined 2.8 per cent year-on-year to £5.1 billion.

"The results are consistent with the outlook for the quarter and primarily reflect lower revenue resulting from the weaker market conditions. Additional plant shutdown time and delays in WLTP certification resulting from Brexit contingency planning also contributed to the lower sales and profits," Tata Motors said.  

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"Tata Motors Group financial performance reflects the historical seasonality and continued challenging market conditions globally. The results are consistent with our outlook provided for the quarter. The domestic auto industry has declined sharply and significantly. In this environment, Tata Motors is focusing on doing things right for the long-term success of this business," the company said in its results release. 

Finance costs increased by Rs 336 crore to 1,712 crore during Q1FY20 versus the corresponding quarter of the pervious fiscal. This includes Rs 112 crore on account of lease liability accounting under IFRS 16.