The company’s consolidated net revenue decreased to Rs 53,530 crore down by 18 percent during Q2 FY2021 as against Rs 65,432 crore recorded during Q2 FY2020.
27 Oct 2020 | 2383 Views | By Shahkar Abidi
Mumbai-based Tata Motors' consolidated recorded a net loss of Rs 307 crore during the financial quarter ending September 2020 (Q2 FY2021) as compared to Rs 188 crore during similar period last year (Q2 FY2020).
Further, the company’s consolidated net revenue decreased to Rs 53,530 crore down by 18 percent ...
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Mumbai-based Tata Motors' consolidated recorded a net loss of Rs 307 crore during the financial quarter ending September 2020 (Q2 FY2021) as compared to Rs 188 crore during similar period last year (Q2 FY2020).
Further, the company’s consolidated net revenue decreased to Rs 53,530 crore down by 18 percent during Q2 FY2021 as against Rs 65,432 crore recorded during Q2 FY2020.
“Despite concerns around risk of second wave of infection in many countries and other geopolitical risks, we expect a gradual recovery of demand and supply in the coming months. In this context, we are committed to achieving near zero net automotive debt in the coming years by focusing on better front-end activations of our exciting product range and executing our cost and cash savings with rigour” the company said in a statement.
On a standalone basis, during Q2 FY2021 wholesales (including exports) increased 3.4 percent to 109,958 units. Domestic volumes were down by: M&HCV -43.2 percent , ILCV -32.5 percent , SCV & Pick Ups -5.7 percent and CV Passenger -74.4 percent . Domestic passenger vehicle volumes were up 110.4 percent.
Guenter Butschek, CEO and MD, Tata Motors said, “The auto industry continued its calibrated progress in Q2 FY2021 as the nationwide lockdown eased further. With health, safety and wellbeing of our employees and the supporting ecosystem at the forefront, we scaled up capacity while prudently addressing supply chain bottlenecks. In PV, we accelerated the momentum built in Q1 FY2021 and saw demand gradually emerge in select segments of CV. We remain hopeful for a full recovery in the CV industry by the end of this fiscal year aligned to the overall improvement in the economy. During the quarter, we delivered on our planned improvements in our operational and financial performance. We reiterate our commitment to make Tata Motors more agile by reducing costs, generating free cash flows, and providing the best in class customer experience.”
JLR returned to profit backed by rebound in China sales
Jaguar Land Rover returned to profit with significant positive cash flow in the quarter as sales and revenue recovered from the impact of Covid-19 in Fiscal Q1 but remained below pre-Covid levels a year ago. Retail sales of 113,569 units were up 53.3 percent over the previous quarter with almost all retailers now open. China sales were particularly encouraging, up 14.6 percent on the prior quarter and 3.7 percent YoY.
Revenue was 4.4 billion pound (Rs 39,859 crore) (on wholesales of 73,451 excluding China JV), up 52.2 percent from Q1 FY2021, although down 28.5 percent from pre-covid levels a year ago. Jaguar Land Rover generated a 65 million pound (Rs 589 crore) profit before tax (PBT) in the second quarter, up significantly from a loss of 413 million pound (Rs 3,741 crore) in the prior quarter but lower than the pre-Covid PBT of 156 million pound (Rs 1,413 crore) a year ago. The improvement in the year reflects the recovery in sales, 0.3 billion (Rs 2,717 crore) of Project Charge+ cost efficiencies and favourable foreign exchange impact. Margins improved from Q1 with EBITDA at 11.1 percent and EBIT at 0.3 percent.
Thierry Bollore, who became Jaguar Land Rover Chief Executive Officer on September 10, concluded: “Although Jaguar Land Rover is not immune to the headwinds impacting the global automotive industry, it has the foundations in place to generate long-term sustainable profitability. I have been encouraged by the strengths of the company – reflected by its brand appeal and the capabilities of its employees – that will enable it to seize new opportunities in a rapidly-changing industry. I am confident these qualities and a strong product strategy with a focus on financial discipline will equip Jaguar Land Rover to address challenges in the period ahead.”