Tata Motors Q2FY21 Net Loss At Rs. 307 Crore; Beats Street Estimates

Tata Motors on October 27, 2020 posted a consolidated net loss of Rs 307.3 crore in the September quarter in comparison to a loss of Rs. 187.7 crore in the year-ago period.

Tata Motors Q2FY21 Net Loss At Rs. 307 Crore; Beats Street Estimates

Also, total revenue from operations of the auto company declined 18.19 percent to Rs 53,530 crore, from 65,431.95 crore a year ago. In the first six months of the ongoing FY21, the company's revenues suffered as its manufacturing units together with several offices remained closed for a substantial time period in the backdrop of Covid 19 pandemic led lockdowns.

"Lockdowns have impacted the company operationally including on supply chain matters. The company is monitoring the situation closely taking into account directives from the governments. Further, the Reserve Bank of India (RBI) has announced moratorium on loan repayments for specific borrower segments, which impacts Group's vehicle financing business in India," Tata Motors said.

JLR unit becomes profitable in Q2FY21

The company's JLR or Jaguar Land Rover business became profitable in the just ended September quarter as there was seen a revival in sales and revenue that got hit in Q1 as an impact of Covid 19. On a quarterly basis, retail sales of JLR stood at 113569 units, up 53.3 percent but on a yearly basis sales were still down by 11.9 percent.

Passenger, Commercial vehicle segment

In the passenger vehicle segment the company realized EBITDA breakeven owing to robust customer demand for its new 'Forever range'. Commercial vehicle segment also witnesses gradual recovery but on a year on year basis remains affected due to unfavorable mix as well as lower volumes.

On an overall basis, even as the second wave of coronavirus risk persist for many nations plus there is geo-political threat, Tata Motors in the next few months foresees gradual recovery in both demand as well as supply.

Shares in Tata Motors ahead of the release of its Q2 numbers ended higher by 1.5 percent at Rs. 135.7 per share.

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