Tata Motors Limited on Friday recorded a loss for the second straight quarter in Q1FY21 as the coronavirus lockdowns negatively hit its sales in India and overseas
Tata Motors Limited on Friday recorded a loss for the second straight quarter in Q1FY21 as the coronavirus lockdowns negatively hit its sales in India and overseas. The loss during the first quarter ended June 30, 2020, stood at Rs 8,438 crore, as opposed to Rs 3,698.34 crore loss recorded in Q1FY20 and Rs 9,863.75 crore loss in Q4FY20. Total revenue from operations slumped 48 per cent to Rs 31,983.06 crore during the quarter under review against Rs 61,466.99 crore in same period last year as lockdowns impacted sales at Jaguar Land Rover, company's luxury car unit.
Company's earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to Rs 682 crore in April-June quarter as against Rs 2,858 crore in Q1FY20.
In Tata Motors segment, the company said, "CV retails at 3,100. Market share in MHCV up 1440 bps as compared with FY20 PV retails at 18,600. Market share in Passenger Cars up 840 bps and UVs up 50 bps as compared with FY20."
In the JLR segment, the company said that coronavirus pandemic resulted in temporary retailer and plant shutdowns, significantly impacting sales and profits. Retail sales of 74,067 vehicles fell 42.4 per cent on-year [add year-ago data if you have]. However, it improved month-by-month through the quarter. In June, the sales declined 24.9 per cent.
"The COVID-19 pandemic has deeply impacted the auto industry in Q1FY21. Post a calibrated restart at all plants in mid-May, we gradually scaled up our capacity while prudently safeguarding the health and well-being of our employees as well as the larger ecosystem. Even as we continue to address the challenges, we see some disruption due to the intermittent shutdowns and supply chain bottlenecks. We have witnessed some green shoots emerging in PV owing to some pent up demand pre COVID, and are hopeful for a full recovery of the CV industry by end of the fiscal year, with a gradual pickup of demand, aligned to the economic recovery. We remain focused on making Tata Motors more agile to improve our market, operational and financial performance by reducing costs, generating free cash flows and providing the best in class customer experience," said Guenter Butschek, CEO and MD, Tata Motors.