The auto major's consolidated net profit stood at Rs 1,738.30 crore in Q3 December 2019 compared with a net loss of Rs 26,992.54 crore in Q3 December 2018.
Consolidated net sales declined 6.83% to Rs 71,051.42 crore in Q3 December 2019 as against Rs 76,264.69 crore in Q3 December 2018. Consolidated profit before tax stood at Rs 1,349.92 crore in Q3 December 2019 over a net loss of Rs 29,228.40 crore in Q3 December 2018. EBITDA margin improved 140 bps to 9.9% in Q3 December 2019 over Q3 December 2018.Tax expense during the quarter jumped 69.38% to Rs 550.33 crore as compared to Rs 324.89 crore in corresponding quarter last year. The Q3 earnings were disclosed after trading hours yesterday, 30 January 2020.
On a consolidated basis, finance costs increased by Rs 175 crore to Rs 1,744 crore during Q3 December 2019 as against Q3 December 2018 due to higher gross borrowings.
During the quarter, consolidated net loss from joint ventures and associates amounted to Rs 199 crore in Q3 December 2019 compared with loss of Rs 138 crore in Q3 December 2018. Other income (excluding grants) jumped 51.12% to Rs 402 crore over Rs 266 crore in Q3 December 2018.
Commenting on the Q3 results, Guenter Butschek, the CEO and managing director of Tata Motors, has said that, The downturn in the automotive industry continued in Q3 as the economy slowed down. Despite gaining sequential market shares in M&HCV, ILCV and SCV this quarter, our financial performance was impacted due to the downturn coupled with the inventory corrections we took to get ready for BS VI. Our focus on retail acceleration and system stock reduction helped us achieve a multi-quarter low inventory level in CV and PV, while simultaneously getting ready for a smooth transition to BSVI.
We have taken the BSVI transition not only as a mere compliance agenda, but, have gone beyond and provided exciting value enhancements packaged in a completely new product portfolio. We are confident that this approach will reap us rich rewards in the coming quarters. As the sales upbeat of the festive months could not sustain, we remain concerned about the intrinsic demand and weak consumer sentiment.
However, we expect a perceptible improvement in demand outlook as the infrastructure investments announced by the government pick up pace. We also anticipate further measures in the Union Budget to boost consumer sentiment and spur growth. We remain optimistic of the medium to long term opportunity offered by the Indian automotive market and aim to win in this market with our fully refreshed, exciting and competitive portfolio coupled with focused efforts to improve our sales and customer experience and continued drive for cost efficiencies, he added.
In Jaguar Land Rover (JLR), revenues increased to 6.4 billion in Q3 December 2019, up by 2.8% on a year-on-year basis. However, total retail sales fell 2.3% in Q3 December 2019 compared with Q3 December 2018. Sales in China continued to recover by 24.3% and sales in North America increased by 1.1% in Q3 December 2019 over Q3 December 2018. Product mix was stronger, with global sales of the new Range Rover Evoque, luxury compact SUV up 30.0% Y-o-Y and the refreshed Land Rover Discovery Sport rising 9.2% Y-o-Y.
Retails of the Range Rover Sport and Land Rover Discovery also grew year-on-year. Pre-tax profit increased to 318 million in the quarter, representing a 591 million year-on- year improvement versus the 273 million loss in the third quarter of last year (before an exceptional non-cash asset impairment of 3.1 billion in Q3 of the prior year).
The improvement reflected a combination of the higher China volume, stronger product mix, lower operating costs (including project charge) and favourable foreign exchange. Margins also turned positive year-on-year with an EBIT margin of 3.3% and an EBITDA margin of 10.8%.
Speaking on the Q3 performance, Sir Ralf Speth, the CEO of JLR, stated that, In the third quarter Jaguar Land Rover sustained year-on-year revenue and profit growth as we continued to transform our business. Conditions in the automotive industry remain challenging but we are encouraged by the recovery in our China business and the success of the new Range Rover Evoque. Our proactive and decisive actions are creating a more robust, resilient business, transforming today for tomorrow.
Our improving financial results and the cost and cash flow achievements of Project Charge will support the next phase of our pipeline of exciting new vehicles and technologies, with a choice of outstanding electrified, petrol and diesel powertrains. This combined success is enabling us to lay the foundations for long-term growth as we move purposefully towards Destination Zero - our mission to shape future mobility with zero emissions, zero accidents and zero congestion, he added.
Meanwhile, N. Chandrasekaran, the Chairman of Tata Sons, Tata Motors and Jaguar Land Rover announced that Sir Ralf Speth has decided to retire from his current role as executive director and chief executive officer of JLR at the end of his contract term in September 2020.
Tata Motors is engaged in manufacture of motor vehicles. The company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold.
Shares of Tata Motors were down 1.07% at Rs 184.2. It hit an intraday high of Rs 188.30 and an intraday low of Rs 181.9 so far.
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