Auto major Tata Motors reported a consolidated net loss of Rs 7,605 crore for the quarter ended March 31, 2021 (Q4FY21), mainly due to supply-related challenges and global chip shortages. Tata Motors, which owns Jaguar Land Rover (JLR), has cash encroachments on assets worth Rs 9,606.1 crore. This is in addition to the restructuring cost of Rs 5,388.2 crore. Overall, exceptional losses in the fourth quarter related to JLR stood at approximately Rs 14,000 crore.
The company had a loss of Rs 9,894.2 crore in the same period last year. The Kovid-19 crisis has prompted a shift to remote work and learning, increasing demand for laptops and other gadgets that use semiconductors. The resulting chip shortage has left suppliers struggling to adjust and forced automakers worldwide to cut production.
The carmaker’s revenue from operations stood at Rs 88,628 crore in the fourth quarter, up 42 per cent from Rs 62,492 crore in the year-ago quarter.
On a standalone basis, Tata Motors reported a net profit of Rs 1,646 crore as against a loss of Rs 4,871 crore in the year-ago period.
For the entire financial year 2020-21, the company reported a consolidated net loss of Rs 13,395 crore as against a net loss of Rs 11,975 crore in the previous year.
As per Bloomberg consensus estimates, Tata Motors was expected to generate a net profit of Rs 2,774.10 crore and revenue of Rs 87,517.8 crore in the fourth quarter.
“Although demand remains strong, the supply situation is likely to be adversely affected in the next few months,” Tata Motors said in a stock exchange filing.
“We expect Q1 FY22 to be relatively weak due to rising commodity inflation vis-à-vis it and a gradual improvement is expected from the second quarter,” it said.
India’s business jumped 106 per cent year-on-year to Rs 20,046 crore in the March quarter.
“The CV business posted a consistent quarter on quarterly growth on improved consumer sentiment, booming e-business, consolidation in freight rates and higher infrastructure demand including road construction and mining. We reduced our operating and financial costs by reducing costs The performance has successfully improved, said Guenter Butschek, CEO and MD of Tata Motors.
Tata Motors reported an operating profit or earnings before interest, tax, depreciation and amortization (EBITDA) at Rs 12.7k crore.
JLR’s EBIT margin increased to 7.5 per cent during the March quarter and to 2.6 per cent for the full year.
On Tuesday, the stock of Tata Motor gained 3.4 per cent to close at Rs 332 on the NSE.