Tata Motors posts standalone loss of Rs 1,282 crore in Q2 on weak India biz, revenue dips 44%
Tata Motors Q2 results: On the consolidated basis, the company posted a lower-than-expected net loss of Rs 216.56 crore, while revenue declined 9.15 per cent to Rs 64,763.39 crore during the quarter under review
- Oct 25, 2019,
- Updated Oct 25, 2019 6:37 PM IST
Amid ongoing slowdown in auto industry, Tata Motors continued to report loss in September quarter, dented by weak volume growth in India. The country's largest automobile manufacturer reported a standalone net loss of Rs 1,281.97 crore during the second quarter ended September 30, 2019, compared to a net profit of Rs 109.14 crore in the year-ago period.
Standalone revenue for the quarter decreased by 44 per cent to Rs 10,000 crore as compared to Rs 17,758.69 crore in the same quarter last year, Tata Motors said in a filing to the Bombay Stock Exchange.
The company said growth continued to be impacted by subdued demand, higher axle loads, liquidity stress, low freight availability for cargo operators and general economic slowdown.
On the consolidated basis, the company posted a lower-than-expected net loss of Rs 216.56 crore, while revenue declined 9.15 per cent to Rs 64,763.39 crore during the quarter under review. On the sequential basis, the company's loss narrowed from Rs 3,679.66 crore in June quarter, helped by improvement in the performance of its British arm Jaguar Land Rover (JLR). The operating profit, or EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 250 basis points (bps) YoY to 12.4 per cent.
The firm's luxury arm JLR posted pre-tax profits of 156 million pounds, 246 million pounds better year-on-year. Revenue increased 8 per cent year-on-year to 6.1 billion pounds, driven by higher wholesales (up 2.9 per cent) and favourable product mix.
Speaking on JLR's performance, CEO Ralf Speth said, "Jaguar Land Rover has returned to profitability and revenue growth. This is testament to the fundamental strength of our business, our award-winning products, new technologies and operating efficiencies. We were one of the first companies in our sector to address the challenges facing our industry."
"Looking forward, we will continue our product offensive, broadening our range of electrified vehicles on the journey towards our destination zero future," Speth added.
In a separate filing, the auto major said that its board has approved and authorised the raising of additional fund upto Rs 3,500 crore through external commercial borrowings.
The company also informed the exchange its board has approved a preferential allotment of ordinary shares and warrants to the promoter, Tata Sons, for an aggregate consideration of -Rs 6,500 crore, subjected to shareholder approval.
Ahead of Q2 earnings, Tata Motors shares closed 4.87 per cent lower at Rs 126.95 apiece on the Bombay Stock Exchange on Friday.
Amid ongoing slowdown in auto industry, Tata Motors continued to report loss in September quarter, dented by weak volume growth in India. The country's largest automobile manufacturer reported a standalone net loss of Rs 1,281.97 crore during the second quarter ended September 30, 2019, compared to a net profit of Rs 109.14 crore in the year-ago period.
Standalone revenue for the quarter decreased by 44 per cent to Rs 10,000 crore as compared to Rs 17,758.69 crore in the same quarter last year, Tata Motors said in a filing to the Bombay Stock Exchange.
The company said growth continued to be impacted by subdued demand, higher axle loads, liquidity stress, low freight availability for cargo operators and general economic slowdown.
On the consolidated basis, the company posted a lower-than-expected net loss of Rs 216.56 crore, while revenue declined 9.15 per cent to Rs 64,763.39 crore during the quarter under review. On the sequential basis, the company's loss narrowed from Rs 3,679.66 crore in June quarter, helped by improvement in the performance of its British arm Jaguar Land Rover (JLR). The operating profit, or EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 250 basis points (bps) YoY to 12.4 per cent.
The firm's luxury arm JLR posted pre-tax profits of 156 million pounds, 246 million pounds better year-on-year. Revenue increased 8 per cent year-on-year to 6.1 billion pounds, driven by higher wholesales (up 2.9 per cent) and favourable product mix.
Speaking on JLR's performance, CEO Ralf Speth said, "Jaguar Land Rover has returned to profitability and revenue growth. This is testament to the fundamental strength of our business, our award-winning products, new technologies and operating efficiencies. We were one of the first companies in our sector to address the challenges facing our industry."
"Looking forward, we will continue our product offensive, broadening our range of electrified vehicles on the journey towards our destination zero future," Speth added.
In a separate filing, the auto major said that its board has approved and authorised the raising of additional fund upto Rs 3,500 crore through external commercial borrowings.
The company also informed the exchange its board has approved a preferential allotment of ordinary shares and warrants to the promoter, Tata Sons, for an aggregate consideration of -Rs 6,500 crore, subjected to shareholder approval.
Ahead of Q2 earnings, Tata Motors shares closed 4.87 per cent lower at Rs 126.95 apiece on the Bombay Stock Exchange on Friday.