Tata Motors reports quarter loss, blames these two factors
Tata Motors on Monday announced that it incurred a consolidated net loss of ₹1,451.05 crore for the third quarter that ended on December 31. Tata Motors informed it had reported a net profit of ₹2,941.48 crore in the same period in the preceding fiscal.
Tata Motors' total revenue from operations touched ₹72,229.29 crore in the third quarter compared to ₹75,653.79 crore in the year-ago quarter. However, on a standalone basis, Tata Motors mentioned a net profit of ₹175.85 crore in the period under review compared to the net loss of ₹638.04 crore in the third quarter of 2020-21. The company also stated the revenue earned from operations came at ₹12,352.78 crore in the third quarter against ₹9,635.78 crore in the same period in the previous fiscal.
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Retail sales of Tata Motors premium arm Jaguar Land Rover (JLR) also saw a dip of 37.6 per cent in the third quarter compared to the previous year, though the production volume increased by 41 per cent sequentially.
The automaker has attributed the loss to ongoing semiconductor shortage as well as the rising price of commodities. “The semiconductor shortage is expected to continue through 2022 but is expected to gradually improve as capacity within the supply base increases," said Tata Motors. The company said the chip crisis is likely to plague the industry this year as well and the situation will improve as the capacity within the supply base increases. Jaguar Land Rover said it is working with first-tier suppliers and chip manufacturers to secure long term supply.
As per the company's statement, JLR is expecting profits to improve with a positive cash flow in the fourth quarter. The luxury unit is also on track to achieve its target of reaching earnings before interest and taxes margin of 10 per cent or more by the year ending March 31, 2026.
(With inputs from agencies)