ECONOMY

Tata Motors Q1 Results: Revenue Tumbles, Reports More-Than-Expected Loss At Rs 3,509 Crore

Tata Motors Ltd. suffered loss for the second straight quarter as demand fell because of local lockdowns that were imposed to curb the severe second wave of Covid-19 infections.

The automaker reported a loss of Rs 3,509 crore in the quarter ended June against the Rs 7,605-crore loss in the preceding three months, according to its exchange filing. A consensus of analysts tracked by Bloomberg had pegged the loss at Rs 2,098 crore.

Highlights (QoQ)

  • Revenue fell 25% to Rs 66,406 crore, against the Rs 61,327-crore forecast.

  • Earnings before interest, tax, depreciation and amortisation fell 59% to Rs 5,242 crore.

  • Margin contracted to 8% from 14.4%.

The Mumbai-based automaker dispatched 41% fewer vehicles than the preceding quarter at 1.07 lakh units in the three months to June. That came as the pandemic’s second wave forced states to impose lockdowns, stalling production and shutting dealerships. India’s hinterland, too, wasn’t spared.

Retail sales of Jaguar Land Rover, which contributes 80% to Tata Motors’ revenue, however, rose 0.85% sequentially to 1.24 lakh units in the quarter ended June. That’s because demand for the luxury brand has improved in key markets such as China, Europe and the U.S.

JLR, however, has warned of worsening chip shortage in the three months to September than in the April-June period. It expects wholesale volumes to be about 50% lower than planned in the second quarter.

Shares of Tata Motors closed 0.95% lower on Monday before the earnings were announced, compared with a 0.2% drop in the benchmark Nifty 50.

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