InvestorQ : Do you expect the stock of Tata Motors to correct after the huge loss posted in the Mar-20 quarter?
Dawn Cherian made post

Do you expect the stock of Tata Motors to correct after the huge loss posted in the Mar-20 quarter?

Answer
user profile image
Dilmini Mercia answered.
3 months ago


Tata Motors posted net loss at Rs.9864 crore for the Mar-20 quarter in stark contrast to the profit of Rs.1109 crore posted in Mar-19 quarter. The loss is much steeper than what the street was anticipating. Even the total sales revenues from operations was down almost 30% at Rs.62,493 crore. The big contributor to the loss was Jaguar Land Rover with reported a quarterly loss of $501 million. The non-JLR businesses also took a deep hit due to the lockdown. Due to operational constraints, the EBITDA margin also dropped from 9.7% to 4.6%. Overall sales volumes for JLR fell 12% to 508,700 units while its Indian businesses witnessed 22% drop in commercial vehicles sales and 25% fall in personal vehicles. JLR took a hit on weakness in the Chinese market, which continues to be one of the most lucrative markets for JLR. However, the CEO of JLR Ralf Speth was confident of a turnaround in China.