Demand shrinkage caused by demonetisation and lower profits from mainstay Jaguar Land Rover see Tata Motors report a sharp fall in its third quarter FY2017 results. Domestic passenger car sales are showing an uptick though.
14 Feb 2017 | 2747 Views | By Autocar Pro News Desk
Tata Motors, which announced its consolidated financial results for the quarter and nine months ended December 31, 2016, has seen its Q3 profit (PAT) fall sharply by 96.20% to Rs 112 crore as against Rs 2,953 crore for Q3 FY2016.
The fall in numbers is a result of lower ...
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Tata Motors, which announced its consolidated financial results for the quarter and nine months ended December 31, 2016, has seen its Q3 profit (PAT) fall sharply by 96.20% to Rs 112 crore as against Rs 2,953 crore for Q3 FY2016.
The fall in numbers is a result of lower offtake in domestic CV operations and lower profit from mainstay Jaguar Land Rover. The company has reported consolidated revenues (net of excise) of Rs 67,484 crore as against Rs 70,567 crores for Q3 FY2016. Consolidated profit before tax for Q3 FY2017 Rs 599 crore, against Rs 3,414 crores for Q3 FY2016.
Tata Motors has said during Q3 FY2017 (October-December 2016), its commercial vehicle operations “witnessed demand shrinkage due to the demonetisation – the M&HCV segment witnessed major pressure with a fall of 9.0% YoY and the LCV segment was overall flat. The passenger vehicles segment grew by 25.4% YoY with the car segment growth of 31.1% YoY on the back of continued strong response to the Tiago. Exports grew by 34.6% YoY.”
Jaguar Land Rover's Q3 profit down 66%
Jaguar Land Rover reported revenues of £6,537 million (up 13.1% Y-o-Y), compared to £5,781 million for Q3 FY2016. Operating profit (EBITDA) for the quarter was £611 million (9.3% margin), compared to £834 million (14.4% margin) for Q3 FY2016.
The company says the operating performance reflects lower wholesale volumes and less favourable product mix partially offset by favourable market mix (including the runout of the Discovery model), unfavourable variable marketing expense including the extended 2016 model year runout expenses in the US; higher new model launch costs and biennial pay negotiation settlement.
Profit before tax (PBT) was £255 million for Q3 FY2017 (after an exceptional item of £85 million of further recoveries related to the Tianjin losses) compared to £499 million in Q3 FY2016. Profit after Tax (PAT) was £167 million for Q3 FY2017 compared to £440 million in Q3 FY2016 – down 62% YoY.