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Last Updated : Oct 31, 2018 04:55 PM IST | Source: Moneycontrol.com

Tata Motors posts Q2 loss of Rs 1,048 cr on dismal JLR sales, standalone profit at Rs 109 cr

Tata Motors' consolidated revenue from operations during the quarter increased 3.3 percent year-on-year to Rs 72,112 crore.

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Tata Motors on Wednesday has reported consolidated loss of Rs 1,048 crore for the quarter ended September 2018, impacted largely by disappointing performance of Jaguar Land Rover which also reported loss of 101 million pound.

Profit for the September quarter 2017 stood at Rs 2,483 crore. On sequential basis, loss has been narrowed from Rs 1,902.4 crore in June quarter.

Provision for impairment of capital work-in-progress and intangibles under development (Rs 93.21 crore) and provision for costs of closure of operation of a subsidiary (Rs 437.08 crore) also hit bottomline.

Close

Consolidated revenue from operations during the quarter increased 3.3 percent year-on-year to Rs 72,112 crore driven by domestic sales volume.

"Our solid, all-around performance in Q2FY19 has impressively demonstrated that Tata Motors 'Turnaround 2.0' is in full swing. The continued improvements were made possible due to a robust product and innovation pipeline, strong market activation, rigorous cost reductions and structural process improvements," Guenter Butschek, CEO and MD said.

Numbers missed analyst expectations. Analysts on an average had estimated loss of around Rs 500 crore for the quarter.

At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) margin fell by 130 bps YoY to 9.9 percent and EBIT margin contracted 310 bps to 1.7 percent in Q2.

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Jaguar Land Rover

UK-based luxury car maker Jaguar Land Rover has reported a loss of 101 million pound for the quarter ended September 2018 on fall in revenue and weak operating income.

Revenue during the quarter degrew by 11 percent year-on-year to 5,635 million pound in Q2 as retail sales dropped 13.2 percent to 1.29 lakh units and wholesales fell 14.7 percent to 1.3 lakh units with challenging market conditions in China.

Results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover.

Ralf Speth, Jaguar Land Rover Chief Executive said given these challenges, Jaguar Land Rover has launched far-reaching programs to deliver cost and cashflow improvements of 2.5 billion pound over the next 18 months, he added.

Tata Motors remains focused on delivering improved profitability and cashflow in the second half of FY19, while pressing ahead with product offensive, he added.

JLR EBITDA margin during the quarter dropped 270 bps to 9.1 percent compared to year-ago.

Standalone

The company in its standalone business (domestic) reported profit at Rs 109.14 crore for the quarter against loss of Rs 283.4 crore in corresponding period last fiscal, but the same was lower sharply by 91 percent QoQ from Rs 1,187.65 crore in June quarter.

The company said pre-tax profit for the quarter included one-off charges of Rs 209 crore and foreign currency revaluation loss of Rs 249 crore.

Revenue during the quarter increased by 33.4 percent year-on-year to Rs 17,758.7 crore due to strong sales volume growth of 25 percent with broad based growth across the entire portfolio.

Standalone EBITDA margin expanded by 210 bps to 8.7 percent and EBIT margin 360 bps to 4.5 percent in September quarter.

The company said free cash flow (automotive) in the quarter was negative Rs 4,357 crore reflecting lower operating profits at JLR and closing net automotive debt was Rs 41,151 crore reflecting the cumulative negative free cash flow primarily at JLR.

Tata Motors is the worst performance stock in auto space, falling 60 percent year-to-date and 17 percent during the September quarter against 27 percent and 10 percent fall in Nifty Auto index respectively.

Today the stock closed at Rs 178.65, up 0.76 percent ahead of earnings announced after market hours.

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First Published on Oct 31, 2018 03:46 pm
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