Despite an 18 per cent rise in profits in its UK arm Jaguar Land Rover, Tata Motors has reported a 16.79 per cent drop in consolidated profit at Rs 4,336.43 crore in the fourth quarter ended March 31, 2017 as against a profit of Rs 5,211.49 crore in Q4 FY16 as losses in the Indian operations offset the profits gained abroad.
While the revenue (net of excise) of the standalone business in India for the quarter ended March 2017 stood at Rs 13,621 crore as compared to Rs 12,840 crore for the same quarter of last year, loss after tax for the quarter ended March 2017 was Rs 829 crore against profit after tax of Rs 398 crore for the corresponding quarter last year.
The company posted consolidated revenues of Rs 77,272 crore, down from Rs 79,549 crore recorded in the corresponding quarter last year, the company said. Consolidated revenues in Q4 were lower by Rs 9,032 crore due to translation impact of GBP (British pound) to the Indian rupee, it said.
“We have missed our objectives and we have not been able to live up to our expectations,” Guenter Butschek, managing director, Tata Motors said. “I would not like to go into details why some of the product launches were effectively late, late when talking about our plan for the year 2016-17. As a result we lost on volumes and lost market share. If you ask us if we are satisfied with our overall market performance then we are not happy. We were expecting to come out with some new products and upgrades of new products on time in passenger and commercial vehicles. There are many other misses and lost opportunities,” he said.
Jaguar Land Rover business saw a 13 per cent jump in retail sales during the fourth quarter of fiscal 2016-17. For the year ended March 2017, consolidated profit after tax stood at Rs 7,557 crore, down from Rs 11,678 crore posted in FY16. Consolidated revenue for the full fiscal FY17 was Rs 269,850 crore, lower than Rs 273,111 crore posted in FY16, the company said.
“It has been a challenging and highly volatile year, which followed a period of low demand and inconsistent recovery in the prior years in the automotive sector in India. In addition, the company also under performed on many fronts, amplifying the impact of the external environment. On the way forward, we have detailed actions under focused implementation, and expect to significantly enhance the overall business performance in the coming periods,” the company said.
On JLR, it said retail sales, including the China JV, in the quarter were 179,509 units, up 13.0 per cent on strong demand across the product portfolio, primarily reflecting higher volumes in China, North America, UK and Europe led by strong sales of F-PACE, Range Rover and Discovery Sport. Jaguar Land Rover wholesales, including the China JV, were 175,000 units. JLR posted a profit after tax of 557 million pounds, up 18.0 per cent year-on-year.
In India, commercial vehicle segments of the company witnessed muted demand due to weak replacement demand, subdued freight demand from industrial segment, which took further hit post demonetisation, and lower than expected pre-buying ahead of the implementation of BS IV. Medium and heavy commercial vehicle segment witnessed a fall of 2.2 per cent year-on-year and LCV segment witnessed a fall of 6.1 per cent. Passenger vehicles segment grew by 44.3 per cent with car segment growing of 42.8 per cent and UVs (including vans) segment 51.7 per cent on the back of continued strong response to the Tiago and the launch of Tata Hexa and Tata Tigor, the company said.
The sales (including exports) of commercial and passenger vehicles for the quarter ended March 31, 2017, stood at 151,606 units, a growth of 4.9 per cent as compared to the corresponding quarter last year.