Tata Motors’ net loss narrows on strong growth in exports

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Tata Motors’ net loss narrows on strong growth in exports
Tata MotorsBCCL
Homegrown auto major Tata Motors on Monday reported narrowing of consolidated net loss at ₹4,450.12 crore in the quarter ended June 2021. The company had posted a consolidated net loss of ₹8,443.98 crore in the same quarter last fiscal, Tata Motors said in a regulatory filing.

Consolidated revenue from operations during the period under review stood at ₹66,406.05 crore as against ₹31,983.06 crore in the year-ago period, the company added.

British arm Jaguar Land Rover (JLR) posted revenue of 5 billion pounds in the first quarter, up 73.7 per cent than Q1 in the prior year, the company said, adding JLR had a pre-tax loss of 110 million pounds.

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JLR retail sales in the first quarter were 1,24,537 vehicles, up 68.1 per cent year-on-year as sales continued to recover from the impact of the pandemic but shortage of semiconductor supplies constrained production.

Commenting on the performance, JLR CEO Thierry Bollore said, "We are pleased to see a continuing positive recovery from the pandemic, with year-on-year growth in all regions, demonstrating the appeal of Jaguar and Land Rover vehicles."

Though the current environment continues to remain challenging, he said, "We will continue to adapt and manage elements that are within our control and ensure that Jaguar Land Rover is well-placed to respond to any further market developments."

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On a standalone basis, Tata Motors said its continuing business posted a net loss of ₹1,320.74 crore, putting up a better performance from a net loss of ₹2,190.64 crore in the year-ago period.

Standalone total revenue from operations stood at ₹11,904.19 crore as against Rs 2,686.87 crore in the same period a year ago, the company said.

"In Q1FY22 wholesales, including exports, increased 351.4 per cent to 1,14,170 units. The volumes across all segments significantly grew as compared to Q1 FY21, however they were lower than Q4 FY21 due to the lockdowns imposed due to the second wave of pandemic," Tata Motors said.

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Company Executive Director Girish Wagh said the successful implementation of a comprehensive 'Business Agility' plan enabled it to manage lockdowns effectively and also deliver competitive growth as markets reopened.

"In the near term, we remain focused on fulfilling customer demands while driving all levers of the business to mitigate the unprecedented commodity inflation," he added.

Looking beyond the short-term challenges, Wagh said, "We see significant opportunities to leverage the mega trends shaping the Indian automotive industry."

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The company is working to transform the customer experience digitally and also strengthen our lead in sustainable mobility, he said adding "we will continue to make the requisite investments to ensure a competitive product portfolio whilst driving down the cash break-evens of the business to deliver consistent, competitive and cash accretive growth over the medium to long term".

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