Tata Motors Posts A Q1 Loss Of ₹ 4,451 Crore, Revenue Up ₹ 66,406 Crore

Tata Motors in a regulatory filing on Monday has posted a loss of ₹ 4,451 crores in the first quarter ended June 2021 compared to a loss of ₹ 8,438 crores in the same quarter last year. The auto major has posted total revenue of  ₹66,406.05 crores during the first quarter of the current fiscal, up 107.6% year-on-year (YoY).

The company has restated that global chip shortages, uncertainty due to the spread of coronavirus variants and commodity inflation would impact business in the short term.

"Demand remains strong for JLR and India PV, while CV demand is showing gradual improvement. In this dynamic business environment, we anticipate that semiconductor issues, commodity inflation, and pandemic uncertainty will have an impact in the short term. We expect the performance to improve progressively from H2 as supply chain and pandemic situation improves," Tata Motors said in a stock exchange filing.

Retail sales of Jaguar Land Rover in the first quarter of the current financial year came in at 124,537 vehicles, up 68.1 percent on an Y-o-Y basis, as sales continued to recover from the impact of the pandemic but the shortage of semiconductor supplies constrained production.

Thierry Bolloré, Jaguar Land Rover Chief Executive Officer said: “We are pleased to see a continuing positive recovery from the pandemic, with year-on-year growth in all regions, demonstrating the appeal of Jaguar and Land Rover vehicles. Though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control and ensure that Jaguar Land Rover is well-placed to respond to any further market developments."

Meanwhile, Tata Motors' revenue from operations jumped 108 percent to ₹ 66,406 crores in the April-June period as the Covid-19 pandemic, which hit sales across the luxury carmaker's business a year earlier, fuelled strong demand for personal vehicles. Tata Motors' domestic sales in the June quarter jumped 340 percent to 95,200 units.

“We will remain agile to address these challenges and drive consistent, competitive and cash accretive growth over the medium to long term whilst deleveraging the business to near-zero automotive debt by FY24.” The company said in the stock exchange filing.

“Looking beyond the short-term challenges, we see significant opportunities to leverage the mega trends shaping the Indian automotive industry. We are working to transform the customer experience digitally and also strengthen our lead in sustainable mobility. We will continue to make the requisite investments to ensure a competitive product portfolio whilst driving down the cash break-evens of the business to deliver consistent, competitive and cash accretive growth over the medium to long term.” Said Girish Wagh, Executive Director at Tata Motors said in a statement.