Mumbai: Tata Motors on Friday reported a loss of Rs 430 crore for the July-September quarter against a profit of Rs 3,290.8 crore in the year-ago period, hit by weaker China sales of Jaguar Land Rover cars due to damaged caused in Tianjin Port explosion and higher finance cost, disappointing streets.
The commercial vehicle and luxury car maker had reported an exceptional cost of Rs 2,652.92 during the quarter, including a charge of Rs 2,493 crore (which was one-time hit) on account of 5,800 vehicles damaged at Tianjin Port explosion in Jaguar Land Rover business. It also included foreign exchange loss of Rs 114 crore for the quarter against gain of Rs 26.5 crore a year ago. Weaker China sales and foreign exchange revaluation and higher depreciation and amortisation expenses in Jaguar Land Rover business also hit the bottom line.
Consolidated revenue increased 1.1 per cent from a year ago to Rs 61,318 crore, supported by strong JLR sales in the UK, Europe and the US and robust growth in medium and heavy commercial vehicles.
“Revenue was boosted by strong sales in UK, Europe and North America which helped in offsetting weaker sales in China and other emerging markets in Jaguar Land Rover business; and continued robust growth (35.3 per cent from a year ago) in MHICV segment in standalone business. Regional retail sales growth was strong, with USA and UK having their best ever October and Europe significantly up on last year. China was also up, reflecting increased demand for the Range Rover Sport, Range Rover, Discovery as well as start of sales of the Jaguar XE," said Ralf Septh, chief executive officer, Jaguar Land Rover.
Operating profit of the company was down 28 per cent from a year ago to Rs 6,881 crore. Margin contracted by 460 basis points to 11.2 per cent, impacted by other expenses that increased 23 per cent from a year ago to Rs 13,495 crore.
Raw material cost was down 5 per cent to Rs 33,316.7 crore but finance cost climbed 24.7 per cent to Rs 1,159.4 crore (despite fall in debt).
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