Tata Motors posted consolidated net loss of Rs 8,437.99 crore for Q1 FY21, higher than what analysts had estimated. Loss in comparison to the corresponding quarter is Rs 3,698.34 crore. Total revenue from ops fell 47.94 percent YoY to Rs 31,983.06 crore. Operating profit fell 79% to Rs 653.3 crore. Margin narrowed to 2% compared with 4.87% earlier.
The company in the past 9 Quarter results had occurred losses in the 7 results as per a report mentioned in Bloomberg, The current quarter hit by the nation wide pandemic dragging the sector and the sales and operations of the companies down drastically has shown a huge reflection in the results of the company in the past 2 quarters ( Q4, Q1).
The charts of the previous 9 Quarter results are portrayed above in which only couple of green bars can be seen and rest all bars or the quarter results are red which shows net losses in the company.
“The CovidD-19 pandemic has deeply impacted the auto industry in the first quarter of the current fiscal. Post a calibrated restart at all plants in mid-May, we gradually scaled up our capacity while prudently safeguarding the health and wellbeing of our employees as well as the larger ecosystem,” Tata Motors CEO and MD Gueter Butschek said in a release.
Even as the company continues to address the challenges, it sees some disruption due to the intermittent shutdowns and supply chain bottlenecks, Butschek added.
“We have witnessed some green shoots emerging in the passenger vehicle segment owing to some pent-up demand pre-Covid-19, and are hopeful for a full recovery of the CV (commercial vehicle) industry by end of the fiscal year, with a gradual pickup of demand, aligned to the economic recovery,” he said.
The management remains focussed on making the company more agile to improve its market, operational and financial performance by reducing costs, generating free cash-flows and providing the best in class customer experience, the Tata Motors CEO added.
On the pandemic impact, Balaji said, “Overall, Covid-led lockdown impacted us globally. Because of that we had an overall revenue volume decline of close to 64 per cent and a revenue decline of 48 per cent during the quarter.”
The impact was felt very sharply with wholesale down 80 per cent and revenue down almost 80 per cent as well, he noted.