Updated: May 18, 2021 11:57:52 pm
Tata Motors on Tuesday posted a surprise consolidated net loss of Rs 7,605 crore during the January-March quarter as it took an impairment of Rs 14,994 crore as part of Jaguar Land Rover’s (JLR) Re-ImagIne strategy. However, the domestic automaker still narrowed the losses from Rs 9,894 crore posted in the same quarter last year.
Of the Rs 14,994 write-off on part of JLR, Rs 9,606.1 crore relates to cancelled models and a restructuring cost of Rs 5,388.19 crore. However, an improved performance of the passenger vehicle (PV) business in the domestic market saw the company reverse an impairment of Rs 1,182 crore taken at the end of FY20, which limited the overall consolidated loss during Q4. The net loss was also limited by reversal of about Rs 700 crore in the PV business in the domestic market undertaken by Tata Motors in FY20 as part of onerous contract provision.
The company posted a sharp 42 per cent year-on-year rise in revenue from operations at Rs 88,628 crore, as sales of vehicles soared. Ebitda (earnings before interest, tax, depreciation and amortisation) increased nearly three-fold to Rs 12,762 crore. Consequently, Tata Motors’ Ebitda margins came in higher by a good 870 basis points to 14.4 per cent during the quarter. —FE
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