Tata Motors Q3 profit down by 96%. Here’s why

Tata Motors announce a 96.22 % decline in consolidated net profit to Rs 111.57 crore for the December quarter. The reasons of profit being dragged down were the losses in domestic operations and lower profit of its British arm JLR.

The auto major has posted a net profit of Rs 2,952.67 crore in the same quarter of last fiscal, Tata Motors said in a BSE filing.

During the October- December quarter, the company's consolidated sales were down 2.2 % to Rs 67,864.95 crore as against Rs 69,398.07 crore in the year-ago period. Tata Motors' loss after tax widened to Rs 1,046 crore in the third quarter of 2016-17, from Rs 137 crore a year ago.

For the quarter, the revenues of the standalone business (including joint operations) stood at Rs 10,167 crore, as compared to Rs 10,019 crore in the third quarter of 2015-16, up 1.47%.

The company also confirmed that its British arm Jaguar Land Rover posted revenue of 6,537 million pounds, compared to 5,781 million pounds, up by 13.1%.

Tata Motors blamed the demand shrinkage on demonetisation.

Medium and heavy commercial vehicle segment witnessed major pressure with a fall of 9 per cent and LCV segment was overall flat.

Tata Motors stock ended at Rs 468.30 apiece, down 7.34 per cent, on BSE.