Tata Motors Q4 net loss at Rs 9,864 crore as Covid-19 hits sales
Hit by the Covid-19 pandemic, the company’s flagship subsidiary Jaguar Land Rover (JLR) suffered a loss of 501 million pounds in the March quarter and 422 million pounds for the full year on revenues of 5.4 billion pounds and 23 billion pounds respectively.
June 16, 2020 08:44
Mumbai (Maharashtra): Tata Motors on Monday reported a consolidated net loss of Rs 9,864 crore in the January to March quarter (Q4 FY20) as compared to a net profit of Rs 1,109 crore in Q4 FY19.
Total revenue from operations declined to Rs 62,493 crore in Q4 FY20 from 86,422 crore in the corresponding period of previous fiscal. Total income dropped to Rs 63,057 crore from Rs 87,286 crore in the same period.
“The auto industry faced strong headwinds in FY20 amid a slowing economy due to multiple factors — liquidity crisis, high fuel prices, changes in axle load norms and BS-VI transition — all leading to weak consumer sentiments and subdued demand across segments,” said Managing Director and CEO Guenter Butschek.
“Disruption in the supply chain induced by the pandemic and the nationwide lockdown in mid-March 2020 added to the problems. Disappointingly, even with our relentless focus on retail acceleration, ‘Mission Zero’ on BS-IV inventory and stringent cost reduction initiatives, we have not been able to mitigate the impact on our financials,” he said in a statement.
Hit by the Covid-19 pandemic, the company’s flagship subsidiary Jaguar Land Rover (JLR) suffered a loss of 501 million pounds in the March quarter and 422 million pounds for the full year on revenues of 5.4 billion pounds and 23 billion pounds respectively.
However, the company ended the fourth quarter with solid liquidity including 3.7 billion pounds of cash and a 1.9 billion pounds undrawn revolving credit facility.
JLR Chief Executive Ralf Speth said the company was on track to meet its full-year expectations and operational and financial targets before the pandemic hit in the fourth quarter.
“We also reacted quickly to the disruption. In China, we are beginning to see recovery in vehicle sales and customers are returning to our showrooms. Our operational fitness gives me confidence that we can weather this storm.”
The group said Q1 FY21 is expected to be significantly weaker in both JLR and Tata Motors with the full impact of lockdowns being reflected in the results. “A gradual improvement in performance is anticipated in the coming quarters as we deliver our exciting product range while driving a robust cost and cash savings agenda,” it said.
“Actions are underway to significantly deleverage the Tata Motors Group with JLR to become sustainably cash positive from FY22 while becoming future-ready.”
(ANI)
