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Last Updated : Jan 30, 2020 04:44 PM IST | Source: Moneycontrol.com

Tata Motors Q3: Consolidated net profit beats Street, JLR continues to improve

However, the company failed to meet Street expectations on the front of revenue, EBITDA, EBITDA margin and standalone profit.

 
 
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Automaker Tata Motors on January 30 said its consolidated net profit for the December quarter of the financial year 2020 stood at Rs 1,738.30 crore against a loss of Rs 26,992.54 crore in the corresponding quarter of the previous financial year.

The number beat the Street estimates strongly as a CNBC-TV18 poll had estimated the numbers to the tune of Rs 760.8 crore.

The company highlighted that Jaguar Land Rover (JLR) continued its turnaround journey with another strong quarter. While the India business improved sequentially, the performance was impacted by M&HCV decline (despite market share gain) and BS-IV stock reduction.

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However, the company failed to meet Street expectations in terms of revenue, EBITDA, EBITDA margin and standalone profit.

Consolidated revenue from operations stood at Rs 71,676.1 crore in Q3FY20, falling almost 7 percent YoY against Rs 76,915.94 crore in Q3FY19. Revenue came in lower than the CNBC-TV18 poll of Rs 73,008 crore also.

Consolidated EBITDA came in at Rs 7,393.8 crore against CNBC-TV18 poll of Rs 8,150 crore. EBITDA margins improved 350 bps YoY to 10.8 percent.

The consolidated EBITDA margin came in at 10.3 percent against the CNBC-TV18 poll of 11.1 percent.

The company said growth continues to be impacted by subdued demand following the general economic slowdown, higher axle loads, liquidity stress and low freight availability for cargo operators.

The company registered a standalone net loss at Rs 1,039.5 crore against the CNBC-TV18 poll of Rs 22 crore profit. The company had reported a standalone profit of Rs 617.62 crore in the corresponding quarter a year ago.

Standalone revenue stood at Rs 10,842.9 crore against the CNBC-TV18 poll of Rs 12,319 crore.

For the December quarter, net loss from joint ventures and associates amounted to Rs 199 crore compared with a loss of Rs 138 crore in the previous year. Other income (excluding grants) was Rs 402 crore versus Rs 266 crore in the prior year, the company said.

The company's JLR segment saw a 2.8 percent YoY growth on the front of revenue to 6,398 million pound. EBITDA of the segment grew 350 bps to 10.8 percent.

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First Published on Jan 30, 2020 04:44 pm
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