Tata Motors on Tuesday reported a consolidated net loss of ₹ 7,605 crore for the quarter ended March 31, 2021 (Q4FY21). The automaker has reported a net loss of ₹ ₹9,894 crore in the year-ago period.
The company’s revenue from operations came in at ₹ 88,628 crore for the fourth quarter, up 42 per cent from the revenue of ₹ 62,492 crore clocked in the same quarter last year.
The company reported a standalone net profit of ₹1,646 crore as against a loss of ₹4,871 crore in the year-ago period.
It reported an operating profit or the earnings before interest, tax, depreciation and amortisation (EBITDA) at ₹1,27,000 crore.
Guenter Butschek, CEO and MD, Tata Motors, said, “The auto industry was deeply impacted by COVID-19 in FY21 but witnessed a steady growth in vehicle demand as the nationwide lockdown eased and pent-up demand came to fore supported by a steady recovery of the economy,” adding, “The CV business consistently posted sequential quarter on quarter growth on back of improved consumer sentiments, buoyancy in e-business, firming freight rates and higher infrastructure demand including road construction and mining. We have successfully improved our operation.”
The company wrote down assets worth ₹9,606.1 crore related to cancelled models at Jaguar Land Rover (JLR). It also endured restructuring costs worth ₹5,388.2 crore from JLR. Thus, the total exceptional loss related to JLR stood at nearly $2 billion in the quarter ended 31 March, 2021.
“While demand remains strong, the supply situation over the next few months is likely to be adversely impacted,” Tata Motors said in a regulatory filing.
It said that Q1 FY22 will be adversely impacted due to lockdowns and steel and semi-conductor shortages. “Providing interest support to dealers wherever we are finding excess inventory,” the company adds.
Tata Motors’ scrip on BSE closed 3.39% higher at ₹332 in anticipation of the Q4 earnings today.
Recently, Moody’s Investors Service on Friday changed the outlook to stable from negative on Tata Motors Ltd (TML) and affirmed TML’s B1 corporate family rating and B1 senior unsecured ratings.
“The rating affirmation and change in outlook to stable reflect the continued recovery in TML’s consolidated revenue and profitability from the trough during the pandemic in the first quarter of the fiscal year ending March,” said Kaustubh Chaubal, Moody’s Vice President and Senior Credit Officer.