Tata Motors Q3 profit plunges 96% amid mounting losses in domestic operations
Tata Motors said during the third quarter 2016-17, its commercial vehicles segment witnessed demand shrinkage due to the demonetisation
Mumbai: Homegrown auto major Tata Motors Tuesday reported 96.22 percent decline in consolidated net profit to Rs 111.57 crore for the December quarter, dragged down by losses in domestic operations and lower profit of its British arm JLR.
It had posted net profit of Rs 2,952.67 crore in the same quarter of last fiscal, Tata Motors said in a BSE filing.
The company's consolidated sales during the October-December quarter were down 2.2 percent 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, as compared to Rs 10,019 crore in the third quarter of 2015-16, up 1.47 per cent.
Tata Motors said its British arm Jaguar Land Rover posted revenue of 6,537 million pounds, compared to 5,781 million pounds -- up 13.1 percent.
JLR had profit after tax (PAT) of 167 million pounds for the third quarter compared to 440 million pounds in the corresponding quarter last fiscal, down 62 percent.
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 percent.
Tata Motors said during the third quarter 2016-17, its commercial vehicles segment witnessed demand shrinkage due to the demonetisation.
Medium and heavy commercial vehicle segment witnessed major pressure with a fall of 9 percent and LCV segment was overall flat.
Passenger vehicles segment grew by 25.4 percent with car segment rising by 31.1 percent on the back of continued strong response to the Tiago, it added.
Tata Motors stock ended at Rs 468.30 apiece, down 7.34 percent, on BSE.
BSE Midcap fell by 1.98 percent to 26,418.28 while BSE Smallcap declined by 1.79 percent to 29,562.60
Market Roundup: BSE touches lifetime high of 61,963, Nifty surges 138 pts; check top winners and losers
Taking its winning streak to the seventh session, equity benchmark Sensex rallied 460 points to finish at a fresh lifetime peak on Monday, tracking heavy buying in banking, IT and metal stocks
BSE Midcap saw a rise of 1.56 percent to end up 408.47 points higher at 26,556.43, while BSE Smallcap rose by 0.59 percent to end up 173.15 points higher at 29,755.41.