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Tata Motors reports surprise loss of Rs 7,605 cr in Q4; revenue up 42%

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Tata motors

Auto major Tata Motors reported a surprise consolidated net loss of Rs 7,605 crore for the quarter ended March 31, 2021 (Q4FY21), mainly on account of asset write-downs in subsidiary Jaguar Land Rover (JLR).

According to a consensus estimate of Bloomberg, Tata Motors was expected to report a net income of Rs 2,774.10 crore and revenue of Rs 87,517.8 crore for the fourth quarter.

The luxury carmaker, which owns JLR, has incurred cash write-downs on assets worth Rs 9,606.1 crore. this is often aside from the restructuring costs of Rs 5,388.2 crore. In total, the exceptional loss in Q4 associated with JLR stood at nearly Rs 15,000 crore.

It posted a loss of Rs 9,894.2 crore within the corresponding period last year. The carmaker’s revenue from operations came in at Rs 88,628 crore for the fourth quarter, up 42 percent from the revenue of Rs 62,492 crore clocked within the same quarter last year.

On a standalone basis, Tata Motors reported a net income of Rs 1,646 crore as against a loss of Rs 4,871 crore within the year-ago period.

For the complete fiscal year 2020-21, the corporate reported a consolidated net loss of Rs 13,395 crore, against a net loss of Rs 11,975 crore within the previous year.

Tata Motors has flagged global supply-related challenges, where coronavirus cases are still high in many markets.

“Supply chain issues, especially for semiconductors, became harder to mitigate and are now impacting production plans for Q1. the corporate is functioning closely with affected suppliers to resolve the problems and minimise the effect on customers,” Tata Motors said during a stock market filing.

“While demand remains strong, the availability situation over subsequent few months is probably going to be adversely impacted. We expect Q1 FY22 to be relatively weak thanks to this also as rising commodity inflation and expect to enhance gradually from the second quarter,” it said.

The India business reported a 106 per cent year-on-year jump in revenues to Rs 20,046 crore within the March quarter.

“The CV business consistently posted sequential quarter-on-quarter growth on the back of improved consumer sentiments, buoyancy in e-business, firming freight rates and better infrastructure demand including construction and mining. we’ve successfully improved our operational and financial performance by reducing cost,” said Guenter Butschek, CEO and MD of Tata Motors.

Tata Motors reported an operating profit or the earnings before interest, tax, depreciation, and amortisation (EBITDA) at Rs 12.7k crore.

Passenger Vehicle (PV) sales in Q4 stood at 79,600, up 191.6 percent and therefore the PV market share improved to eight .2 percent during the FY21.

Meanwhile, PV EBITDA stood at 4.9 percent and absolute EBITDA highest within the last 10 years.

On Tuesday, Tata Motor’s scrip rallied 3.4 percent to shut at Rs 332 on NSE.

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