Aided by improved sales, homegrown auto major Tata Motors on Tuesday reported a narrowing of consolidated net loss of Rs 7,585 crore for the quarter ended March 31, 2021.
The company had posted a net loss of Rs 9,863.75 crore for the corresponding period of the previous fiscal, Tata Motors said in a filing to BSE. CNBC-TV18 Poll had predicted a profit of Rs 2,721 crore for the quarter under review.
The auto major's total income in the fourth quarter stood at Rs 89,319 crore. It was at Rs 63,057 crore in the year-ago quarter.
The company's British arm, Jaguar Land Rover reported a pre-tax loss of 952 million pounds for the quarter owing to the 1.5 billion pounds of exceptional charges, including 952 million pounds of non-cash write-downs of prior investments and 534 million pounds of restructuring charges expected to be paid in FY'22. This was on account of JLR's new global strategy to 'Reimagine' the future of modern luxury by design and deliver double-digit EBIT margins by fiscal 2025/26.
However, JLR clocked a 20.5 percent increase in revenue at 6.5 billion pounds during the quarter led by China and the new Defender model. Retail sales in the fourth quarter were 1,23,483 units, up 12.4 percent year-on-year. For FY21, JLR revenue was at 19.7 billion pounds while retail sales were at 439,588 units, down 13.6 percent.
Commenting on JLR's performance, company chief executive officer Thierry Bollore said, "I have been encouraged by the company's resilience and strong recovery during a uniquely challenging year. Despite the pandemic, this year has also seen significant positive change culminating in February with the launch of our Reimagine strategy focused on reimagining our iconic British brands for a future of modern luxury by design."
On a standalone basis, Tata Motors reported net profit from continuing operations at Rs 1,645.69 crore. It had reported a loss from continuing operations at Rs 4,871.05 crore in the year-ago period. Tata Motors' standalone total income was at Rs 20,305.90 crore as against Rs 10,001.79 crore in the corresponding period a year ago.
During the quarter, the company's wholesales, including exports, grew by 90.2 percent to 1,95,859 units. "The auto industry was deeply impacted by COVID-19 in FY'21 but witnessed a steady growth in vehicle demand as the nationwide lockdown eased and pent-up demand came to fore supported by a steady recovery of the economy," Tata Motors CEO and Managing Director Guenter Butschek said.
At Tata Motors, he added, "We scaled up capacity by prudently addressing several supply-chain bottlenecks while maintaining the health, safety and wellbeing of our employees as well as the supporting ecosystem at the forefront."
For the entire 2020-21 fiscal, Tata Motors reported a consolidated net loss of Rs 13,395 crore. It had posted a net loss of Rs 11,975 crore in 2019-20. Its total income stood at Rs 2,52,438 crore for the last financial year as against Rs 2,64,041 crore in FY20.
Tata Motors said during the year ended March 31, 2021, an exceptional charge of Rs 14,994.30 crore was recognised under Jaguar Land Rover's 'Reimagine' strategy, which included asset write-downs of 951.83 million pounds (Rs 9,606.11 crore) in relation to models cancelled and restructuring costs of 533.88 million pounds (Rs 5,388.19 crore).
The restructuring costs included 526.36 million pounds (Rs 5,312.29 crore) accruals "to settle legal obligations on work performed to date and provisions for redundancies and other third-party obligations and defined benefit past service cost of 7.52 million pounds (Rs 75.90 crore)".
On the outlook, Tata Motors said while demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from COVID-19 lockdowns in India and semiconductor shortages worldwide.
JLR said the increasing Covid vaccination rates are encouraging for the ultimate recovery of the global economy and automotive industry from the effects of the pandemic.
(Edited by : Jomy)
First Published: IST