India’s Tata Motors reports loss due to lower JLR sales
For the first time in three years the automaker reported a consolidated net loss for the quarter ended June
Shares of Tata Motors, the automotive arm of salt-to-software-conglomerate Tata Group, slipped over 4% in morning trade on Wednesday, after the automaker reported a consolidated net loss for the quarter ended June at 18.62 billion rupees (US$277 million) and missed estimates. In same quarter a year ago, Tata Motors posted a profit of 31.82 billion rupees.
In the morning trade Tata Motors scrip was trading close to its 52-week low of 247.30 rupees on the National Stock Exchange and was the topmost loser on NIFTY.
Tata Motors reported its first quarterly loss in three years after being badly affected by a poor showing by its UK arm, Jaguar Land Rover (JLR), which reported a loss of £210 million ($275 million) and its revenue dropped 6.7% to £5.2 billion.
JLR sold fewer cars to China as dealers delayed purchases to benefit from an import-duty cut that came into effect on July 1. The move is expected to provide a boost to overseas carmakers in the coming quarters.
On the domestic front, Tata Motors reported a quarterly profit of 11.88 billion rupees in its business in India, reversing a loss in the same period a year ago, helped by higher sales of its passenger and commercial vehicles.