Tata Motors, the parent company of luxury car maker Jaguar Land Rover, said on Monday that its loss narrowed to Rs 4,451 crore in the first quarter ended June 2021 from a loss of Rs 8,438 crore in the same quarter last year. The company has reiterated that global chip shortages, uncertainty due to the spread of coronavirus variants and commodity inflation would impact business in the short term.
“Demand remains strong for JLR and India PV, while CV demand is showing gradual improvement. In this dynamic business environment, we anticipate that semiconductor issues, commodity inflation and pandemic uncertainty will have an impact in the short term. We expect the performance to improve progressively from H2 as supply chain and pandemic situation improves,” Tata Motors said in a stock exchange filing post market hours.
Meanwhile, Tata Motors’ revenue from operations rose 108 per cent to Rs 66,406 crore in the April-June period as Covid-19 pandemic, which hit sales across the luxury carmaker’s business a year earlier, fuelled strong demand for personal vehicles.
Retail sales of Jaguar Land Rover in the first quarter of current financial year came in at 124,537 vehicles, up 68.1 per cent on an annual basis.
“Sales continued to recover from the impact of the pandemic. Shortage of semiconductor supplies constrained production, resulting in a pre-tax loss of £110 million with an EBIT margin of 0.9 per cent and a free cash outflow of £996 million marking a significant improvement from the loss of £413 million and cash outflow of £1.6 billion at the peak of the pandemic a year ago,” Tata Motors said in an exchange filing.
Tata Motors’ domestic sales in June quarter jumped 340 per cent to 95,200 units.
“The successful implementation of a comprehensive business agility plan enabled us to manage lockdowns effectively and also deliver competitive growth as markets reopened. In the near term, we remain focused on fulfilling customer demands while driving all levers of the business to mitigate the unprecedented commodity inflation,” Girish Wagh, Executive Director at Tata Motors said in a statement.
Tata Motors shares ended 0.86 per cent lower at Rs 293 ahead of earnings announcement.