While the domestic business of Tata Motors continues to post robust set of numbers led by new launches and turnaround action taken by the company, market conditions in China are a drag.
Uncertainties regarding diesel vehicles in Europe and the UK too weigh on the company. The decline in the UK and Europe was primarily due to on concerns over more restrictions on diesel vehicles. JLR’s European and UK portfolio are predominantly diesel.
JLR reported a loss for second consecutive quarter at 101 million pounds as compared to profit of 308 million pounds in the same quarter last year. Significant decline in volume led to YoY decline of 10.9 percent in net revenues. Earnings before interest, tax, depreciation and amortisation (EBITDA) margin witnessed a YoY contraction of 270 bps.
Sakshi Batra does a 3 point analysis of the second quarter numbers as well as the strategy investors can adopt on the stock.
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