Weak domestic business to offset gains on JLR front for Tata Motors

Analysts expect the company to turn profitable only in Q4FY21

Hit by Covid-related lockdowns at both JLR and its domestic operations, Tata Motors reported its second consecutive quarterly loss. Barring the profit in the December quarter last year, this will be the fourth quarterly loss since the start of FY20. A 45 per cent fall in volumes for Jaguar Land Rover and a 82 per cent volume drop in Indian operations led to revenues falling by nearly half of year ago levels. 

Given the higher fixed costs and negative leverage, operating profit saw a sharper 79 per cent slide to multi quarter lows. Though overall operating profit margins came in