Tata Motors Q1 results: Weak Jaguar Land Rover sales drive company into 1st quarterly loss in 3 years

By: |
Updated: Jul 31, 2018 6:43 PM

India's Tata Motors Ltd reported its first quarterly loss in nearly three years on Tuesday, as UK business Jaguar Land Rover sold fewer of its luxury cars to dealerships in China

Weak Jaguar Land Rover sales drive Tata Motors into loss for 1st time in 3 years in first quarterWeak Jaguar Land Rover sales drive Tata Motors into loss for 1st time in 3 years in first quarter (Image: Reuters)

India’s Tata Motors Ltd reported its first quarterly loss in nearly three years on Tuesday, as UK business Jaguar Land Rover sold fewer of its luxury cars to dealerships in China, while raw material costs rose. The automaker said the first-quarter net loss was 19.02 billion rupees ($277 million), compared with a profit of 31.82 billion rupees a year earlier that included a 36.09 billion rupee gain from changes to the way JLR’s pension payments are calculated.

Dealers in China delayed purchases to benefit from an import duty cut that came into effect after the end of the reporting quarter, the automaker said, adding that planned dealer stock reduction in other markets also weighed on its business.

That resulted in a 6.7 percent drop in quarterly revenue for JLR, the company added. Total expenses during April-June rose about 17 percent to 698.90 billion rupees. JLR had said in April it would cut around 1,000 jobs and production at two of its English factories due to a fall in sales caused by uncertainty around Brexit and confusion over diesel policy. Tata Motor shares closed 1.27 percent lower ahead of the results, compared to the broader Mumbai market that closed up 0.33 percent.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1DoT proposal on self KYC through end-to-end online process cumbersome: Telcos
2‘Clear dues immediately’: Centre raps UP for ‘discriminatory’ behaviour towards independent power producers
3OYO reaches 30% of pre-Covid occupancy on bookings by millennials, SMEs