Hit by slow growth in sales at its British luxury carmaker Jaguar Land Rover and losses in its domestic business, auto major Tata Motors on Tuesday reported a worse than expected 96 per cent fall in consolidated net profit to Rs 111.57 crore for the December quarter against a net profit of Rs 2,952.67 crore in the same quarter of last financial year.
With demonetisation hurting sales in the commercial vehicles segment, the company’s consolidated sales during the October-December quarter were down 2.2 per cent to Rs 67,864.95 crore as against Rs 69,398.07 crore in the year-ago period. On a standalone basis, 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.
The revenues (net of excise) of the standalone business (including joint operations) for the quarter under review stood at Rs 10,167 crore, compared with Rs 10,019 crore in the third quarter of 2015-16, up 1.47 per cent.
Tata Motors said its commercial vehicles segment witnessed demand shrinkage due to demonetisation during the third quarter 2016-17.
Medium and heavy commercial vehicle segment witnessed major pressure with a fall of 9 per cent and LCV segment was overall flat.
Passenger vehicles segment grew by 25.4 per cent with car segment rising by 31.1 per cent on the back of continued strong response to the Tiago.
British arm Jaguar Land Rover posted revenue of 6,537 million pounds, compared with 5,781 million pounds in the year-ago period — up 13.1 per cent. JLR had profit after tax (PAT) of 167 million pounds for the third quarter compared to 440 million pounds in the corresponding quarter last financial year, down 62 per cent. It had lower wholesale volumes and less favourable product mix but was partially offset by favourable market mix, including the runout of Discovery, the company said.
There were also unfavourable variable marketing expense and higher new model launch costs and biennial pay negotiation settlement. Favourable operating exchange was also offset by realised hedges, the company added. JLR’s total retail sales, including the China JV, were at 1,49,288 units, up 8.5 per cent.
Shares of Tata Motors on Tuesday fell by nearly 5 per cent after the company reported a steep 96.22 per cent decline in consolidated net profit for the December quarter. The scrip sank 3.68 per cent to settle at Rs 486.80 on BSE. Intra-day, it tanked 7.34 per cent to Rs 468.30. The stock was the worst performer among the BSE-30 Sensex components.
With PTI inputs