Tata Motors net profit dropped around 96% on year to Rs 111.57 crore in the quarter ended December impacted by the demonetisation of high end currencies in November and a lower wholesale volumes from Jaguar Land Rover business. The consolidated total income was lower by 4.29% to Rs 68,541 crore, while total expenses were marginally higher at Rs 67,609.81 crore compared with Rs 67,024.04 crore a year ago.
At consolidated level the earnings before interest, taxes, depreciation and amortisation fell 41.71% to Rs 5,161.21 crore while the Ebitda margin for the period dropped 486 basis points to 7.5% on year.
At Jaguar Land Rover, the lower wholesale volumes, higher marketing expenses and relatively weaker product mix led to a drop in operating income to £611 million compared with £834 million a year ago. The Ebitda margin for JLR was lower at 9.3% compared with 14.4% a year ago. However, revenues rose 13.1% to £6,537 million.
JLR’s total retail sales, including the China joint venture, rose 8.5% on year to 149,288 units on strong products demand, primarily reflecting higher volumes in China, North America and Europe, the company said.
Tata Motors’ standalone net loss widened to Rs 1,045.94 crore from Rs 139.25 crore a year ago, as demonetisation led to a drop in sales of medium and heavy commerical vehicles (M&HCV).
“Sales of M&HCVs dropped by 35% in November, which improved only marginally in December. We expect the trend to continue in January as well. However, Q4 (Jan-Mar quarter) is expected to see buoyancy,” C Ramakrishnan, Group CFO, Tata Motors, said.
The company’s commercial vehicle segment saw a demand shrinkage with the M&HCV segment witnessing a major pressure with a fall of 9% on year, while the light commercial vehicle segment was overall flat. However, the passenger vehicles segment grew by 25.4% on year with a car segment growth of 31.1% on the back of continued strong response to the Tiago.
Exports grew by 34.6% on year. The sales, including exports of commercial and passenger vehicles, stood at 132,572 units, a growth of 7.5%, as compared to the corresponding quarter last year.