On Thursday, Tata Motors posted a consolidated net profit of Rs 1,755.88 crore for the December-ended quarter. In the same period of the previous year, the company reported a net loss of Rs 26,960.8 crore on one-time exceptional non-cash charge for asset impairment of Jaguar Land Rover.
The profit reported was despite a decline in sales volume by 12 percent at 276,000 and revenue fall of 7 percent to Rs 71,676.07 crore, year-on-year.
EBITDA margin was up by 140 basis points to 9.9 percent in the December quarter and EBIT margin stood at 2.3%, 240 bps increase.
Jaguar Land Rover saw a 2.8 percent year-on-year increase in revenue at £ 6.4 billion. Profit after tax was £ 372 milion. Its EBITDA margin stood at 10.8 percent for the quarter, EBIT margin at 3.3 percent.
The revenue increase was supported by 24.3 percent growth in retail sales in China and strong demand for the Range Rover Evoque which saw a 30 percent increase in global sales.
"Jaguar Land Rover continued its turnaround and transformation Journey with another quarter of strong delivery. China continues to improve gradually while Project Charge is well ahead of plans having already delivered £2.98 so far. "Project Charge+" has been formally launched to deliver £1.18 of cost and cash savings (£0.48 in Q4FY20 and £0.78 in FY21). The product offensive continued with the launch of the New Defender whose order books are building up strongly. However, global markets remain challenging and, in this context, we are focused on leveraging our strong brands and exciting product portfolio to step up revenue growth while rigorously executing our cost savings plans," the company said in its stock exchange filing.
As for India business, Tata Motors said that it continues to be impacted by the general economic slowdown.
"The profitability was impacted by adverse mix where despite increasing market shares, M&HCV volumes declined. This coupled with proactive system stock reduction of Rs 3,800Cr resulted in loss of operating leverage. Though the near-term market situation is fluid, we are optimistic on the medium term as we launch our exciting 85 VI range of products with our system inventory at a multi-year low. We remain focused on driving our Turnaround strategy and transitioning seamlessly to 8SVI. As we strengthen our internal capabilities, we remain confident of delivering competitive, consistent and cash accretive growth," it said.