The Covid-19 pandemic has hit Tata Motors hard with the auto maker posting higher losses than anticipated by the Street for the quarter ended March 31, 2020.
Consolidated losses at Tata Motors during the period came in at Rs 9,894.25 crore against a net profit of Rs 1,117.48 crore in the same period of the previous year.
Analysts had expected the company to record a loss of Rs 2,000 crore for the quarter.
The huge loss came as revenues took a beating because of the spread of the coronavirus and the subsequent lockdown globally. Consolidated revenues plummeted 28 per cent to Rs 61,949.39 crore from Rs 85,676.33 crore in the year-ago period. Of this, revenues at its subsidiary — Jaguar Land Rover (JLR) — declined to £5,426 million from £7,134 million in the same period last year, a drop of 24 per cent.
However, its standalone revenue took a much sharper knock as it fell to Rs 9,653.80 crore from Rs 18,428.60 crore in the year-ago period, down almost 48 per cent.
Commenting on the performance during the period, Tata Motors said that while Covid-19 impacted the seasonally strongest quarter, the India business was affected further by low GDP growth, liquidity, axle-load norms and transition to BS-VI.
JLR, following lower sales, suffered a loss of £501 million in the fourth quarter compared with a profit of £121 million in the year-ago period. The loss for the full year stood at £422 million.
