InvestorQ : What explains another bad quarter for Tata Motors? Was it JLR once again?
Dia Deshpande made post

What explains another bad quarter for Tata Motors? Was it JLR once again?

Answer
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Ria Jain answered.
3 months ago


Tata Motors had another bad quarter as it reported net loss of Rs.8444 crore for the quarter ended June 2020. The elaborate lockdown in several countries had a deep impact on Jaguar Land Rover or JLR. Of course, even the domestic business of TAMO got hit. Revenues from core operations during for the Jun-20 quarter almost halved to Rs.31,983 crore. EBITDA margins impacted due to adverse mix and negative operating leverage.

For the JLR segment, COVID-19 resulted in temporary retailer and plant shutdowns. This had significantly impacted sales and profits. Retail sales of 74,067 vehicles were lower by 42.4% on a YOY basis. JLR revenues stood at £2.9 billion pound in the quarter and the company made a pre-tax loss of £413 million.

While the company has admitted that the outlook remained uncertain for the year due to infections continuing to rise and intermittent lockdowns in many countries, TAMO does expect a gradual recovery of demand and supply. Now, in line with the overall TAMO group strategy, it is looking to substantially deleverage the business