Tata Motors on Thursday reported a consolidated net loss of Rs 3,680 crore for June quarter of current financial year 2019-20 against a loss of Rs 1,863 crore registered in the year-ago period.
Total revenue from operations was Rs 61,467 crore, down 7.7 per cent year-on-year. Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 130 basis points to 6.2 per cent while EBIT margin skidded 170 bps lower to minus 2.5 per cent.
The company said that Q1 was impacted by demand slowdown, higher axle loads, liquidity stress, low freight availability for cargo operators.
Finance costs increased by Rs 336 crore to Rs 1,712 crore during the quarter under review. This includes Rs 112 crore on account of lease liability accounting under International Financial Reporting Standard (IFRS) 16, Tata Motors said in its press release.
Retail sales including Chery Jaguar Land Rover (CJLR) fell 11.6 per cent to 128,615 units while wholesales (including CJLR) dropped 9.9 per cent to 118,550 in Q1 FY20.
The company's flagship arm Jaguar Land Rover (JLR) reported a pre-tax loss of 395 million pounds compared to 264 million pound loss in the same period a year ago. The quarterly revenues declined 2.8 per cent year-on-year to 5.1 billion pounds.
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"The results are consistent with the outlook for the quarter and primarily reflect lower revenue resulting from the weaker market conditions. Additional plant shutdown time and delays in Worldwide Harmonised Light Vehicle Test Procedure (WLTP) certification resulting from Brexit contingency planning also contributed to the lower sales and profits," Tata Motors said in a statement.
"Tata Motors Group financial performance reflects the historical seasonality and continued challenging market conditions globally. The domestic auto industry has declined sharply and significantly. In this environment, Tata Motors is focusing on doing things right for the long-term success of this business," it said.
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