Tata Motors has reported a loss of Rs. 9,863.75 crore in the Q4 of Financial Year 2019-20, as against the Rs. 1,108.66 crore profit it made in the same quarter last fiscal year.
Tata Motors’ consolidated income between January-March 2020 stood at Rs. 62,492.96 crore
Tata Motors today reported a consolidated loss of ₹ 9,863.75 crore in the fourth quarter of the Financial Year 2019-20, which ended on March 31, 2020. In comparison, the company reported a net profit of ₹ 1,108.66 crore for the same period in FY2019. The company’s total income between January and March 2020 stood at ₹ 62,492.96 crore, a decline of almost 28 per cent, as against its net income of ₹ 86,422.33 crore generated during the same quarter last year.
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Tata Motors Limited’s standalone results saw the company post a loss of ₹ 4,871.05 crore in the fourth quarter of FY2020, as against the ₹ 106.19 crore profit the company made during the same quarter in the last financial year. The company’s standalone revenue for this period stood at ₹ 9 ,732.87 crore, a decline of about 47 per cent, as compared to the carmaker’s net revenue of ₹ 1 8,561.41 crore generated in the same quarter in FY 2019.
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Commenting on the company’s performance, Guenter Butschek, CEO and MD, Tata Motors, said, “The auto industry faced strong headwinds in FY20 amidst a slowing economy due to multiple factors – liquidity crisis, high fuel prices, changes in axle load norms and BS6 transition, all leading to weak consumer sentiments and subdued demand across segments. Disruption in the supply chain induced by the pandemic and the nationwide lockdown in mid-March 2020 added to the problems. Disappointingly, even with our relentless focus on retail acceleration, ‘Mission Zero’ on BS6 inventory and stringent cost reduction initiatives, we have not been able to mitigate the impact on our financials.”
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As for the company’s luxury car brand, Jaguar Land Rover, it too reported a loss of 500 million euros ( ₹ 4,276 crore) for the January-March 2020 quarter, while its net revenue was down by 24 per cent at 5.5 billion euro ( ₹ 46,403 crore). Claiming that this was mainly due to the impact of the coronavirus pandemic, Prof Sir Ralf Speth, JLR CEO commented, “Jaguar Land Rover’s early action to transform its business meant that as a company we were on track to meet our full year expectations and operational and financial targets before the pandemic hit in the fourth quarter. We also reacted quickly to the disruption. Our immediate priority has been the health and wellbeing of our people – and this remains the case as we have now begun the gradual, safe restart of our operations.” He also said, “In China, we are beginning to see recovery in vehicle sales and customers are returning to our showrooms. Our operational fitness gives me confidence that we can weather this storm.”
Also Read: Jaguar Land Rover Raises $705 Million Loan From Chinese Banks
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