Jaguar Land Rover suffers massive fourth-quarter loss

Tata Motors Posts Rs 26,993 Crore Quarterly Loss Its Biggest Ever

Jaguar Land Rover suffers massive fourth-quarter loss

Dr Ralf Speth, JLR chief executive, said: "Jaguar Land Rover reported strong third quarter sales in the United Kingdom and North America, but our overall performance continued to be impacted by challenging market conditions in China".

"We have five global regions around the world and we are more or less nicely balanced in terms of volume across these markets, but depending on the level of downturn in China, the impact is most likely heavily affect the premium auto market as a whole, no ifs or buts", Speth said.

Tata Motors has reported its biggest net loss of ₹26,993 crore for the December quarter, impacted by exceptional item of asset impairment in JLR of Rs 27,838 crore.

The fall in vehicle sales was mainly as a result of continued challenging market conditions in China, which was offset partially by encouraging growth in North America and the UK.

On a standalone basis, Tata Motors posted PAT of Rs 617.62 crore as against Rs 211.59 crore in the year-ago quarter.

"Today, we are also announcing a non-cash exceptional charge to reduce the book value of our capitalised investments".

Excluding that one-off charge, Jaguar Land Rover posted a £273 million pre-tax loss between October and December, against revenues of £6.2 billion. "With these interventions, we are building Tata Motors to deliver strong results in the medium term". Total exports during the month stood at 3,270 units, a dip of 37 per cent as compared with the same period of last month due to the current liquidity crisis in Nepal, formation of new government in Bangladesh and political uncertainty in Sri Lanka, the company said.

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Speth said: "This is a hard time for the industry but we remain focused on ensuring sustainable and profitable growth and making targeted investments that will secure our business in the future".

Tata Sons Chairman N Chandrasekaran said the company was taking "decisive steps" to increase JLR's competitiveness, reduce costs and improve cash flows.

In the domestic market M&HCV sales were down 15 per cent, while passenger vehicles were up by 3 per cent.

Guenter Butschek, CEO and MD, Tata Motors, said "Fiscal year 2019 so far has been a challenging period for the industry".

JLR's retail sales were down 6.4 per cent to 1,44,602 units, while wholesales were down 11 per cent to 1,41,552 in the third quarter.

Tata Motors shares on BSE closed up 2.64% at Rs 182.90 in a flat Mumbai market on Thursday.

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