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Slowdown drives Tata Motors to net loss at Rs 2,505cr

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BS Reporter Mumbai
Last Updated : Jan 19 2013 | 11:54 PM IST

Tata Motors today recorded a net loss of Rs 2505.25 crore for the financial year ended March 31, 2009 as compared to a net profit of Rs 2167.70 crore in the corresponding period last year. The company's consolidated gross revenue for the year stood at Rs 74,151.21 crore as against Rs 40340.79 crore in the previous year.

The company said that the consolidated financials were not comparable to that of the financial year 2007-08, on account of the acquisition of of Jaguar Land Rover in June 2008.

The company said that the global meltdown, especially after July 2008 with vehicle financing and demands drying up, has impacted the auto industry worldwide, including JLR. Consequently, Land Rover sales fell considerably during 2008. However, Jaguar was able to maintain its sales level on the back of strong consumer response to the newly launched XF sedan.

As a result of the slowdown, the company said that it had to cut costs drastically in 2008, and is still working on a substantial cost reduction plan. The company said that it is now in the process of aligning production with demand, while imposing a tight control over cash flows.

The company is also focusing on aggressive growth in both domestic and overseas markets harnessing stimulus packages announced by different governments.

On May 29, the company reported its stand-alone revenues for the financial year at Rs 25660.79 crore along with a net profit of Rs 1001.26 crore.

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Tata Motors shares were hovering around Rs 340.30 on the Bombay Stock Exchange in a strong weekend market.

 

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First Published: Jun 26 2009 | 5:36 PM IST

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