Tata Motors consolidated business (including commercial vehicles and Jaguar Land Rover) has recorded a downside of 49 per cent in profits in the last quarter of FY2019. Its net revenue in the same quarter stood at ₹ 86,422 Crore against ₹ 88,966 crore in the same period last year saw a decline of 2.85 per cent. In the same period, the company’s EBIDTA margin stood at 9.7 per cent which is a good 2.8 per cent less than the same period last year.
Tata Motors standalone business has been battling market conditions while the JLR which sales were under pressure in specific markets due to political and trade uncertainty, but now is showing signs of improvement. Jaguar Land Rover’s sales in the European and US markets have shown an increase while the China Joint Venture- CJLR has recorded a growth of 5.8 per cent to 578,915 retail units in the same period. JLR’s pre-tax profit after exceptional items was at 120 million Euros.
Commenting at the sales performance, N.Chandrasekaran, Chairman, Tata Group said the domestic business delivered a resilient performance in the face of challenging market conditions. They have decided to step up their pace of innovation, improved their market shares as well as the profitability.
As reported by NDTV Profit, JLR continues to face challenges in China which they are addressing on priority. To combat the volatility, they are taking decisive steps to step up competitiveness, reduce breakeven and improve cash flows whilst continuing to invest in novel products and leading-edge technologies.
Tata Motors has recorded a loss of ₹ 28,724 crore in the Fiscal Year 2019 against a profit of ₹ 9091 crore. Company’s net revenue in the same year was at Rs 301,938 crore which is an increase of 1.90 per cent compared to the total revenue of 296, 298 which it generated from operations in last year. In the same fiscal year, JLR has recorded a loss of 358 million Euros.
