Tata Motors' Rs 1,864 cr surprise Q1 loss

Auto major Tata Motors on Tuesday reported a consolidated loss of Rs 1,863.57 crore for June quarter on account of Rs 1,125.70 crore deferred tax credit against ET Now poll estimate of Rs 1,500 crore profit.The auto major had reported Rs 3,199.93 crore profit in the year-ago quarter.Revenue for the quarter came in at Rs 65,956.78 crore compared with Rs 58,766.07 crore in the year-ago quarter. As far as Indian operations (standalone) were concerned, revenue jumped 83 per cent YoY to Rs 16,830 crore. Profit after tax stood at Rs 1,188 crore.The luxury unit of the Indian auto firm, Jaguar Land Rover, reported a loss of 210 million pounds in June quarter.JLR's revenues fell 6.7 per cent YoY for the quarter to 5.2 billion pounds due to lower wholesales and increased incentives in China in advance of the July 1 duty reduction.65214170 The lower wholesales and higher China incentives combined with unfavourable balance sheet currency revaluation and higher depreciation and amortisation resulting from continuing investment led to a pre-tax loss for the quarter of 264 million pounds, the company said."With regards to JLR, we faced multiple challe4nges including issues like China duty impact as well as the market issues like diesel concerns in UK and Europe," said Chairman natarajan Chandrasekaran.JLR's total investment spending for the quarter stood at 1.1 billion pounds. This investment spending and seasonal working capital outflows of 1 billion pounds led to negative operating cash flow of 1.7 billion pound, the company said.The company said its closing net debt soared to Rs 62,436 crore as of June 30 from Rs 39,977 crore as of March 31 due to negative free cash flow at both Tata Motors and JLR, and continued investments. Net Automotive debt rose to Rs 32,977 crore for the quarter compared with Rs 13,889 crore in March quarter.

from The Economic Times https://ift.tt/2LHKIAE