Tata Motors posts loss of Rs 26,961 cr on JLR woes

New Delhi, February 7 

Auto major Tata Motors today reported a whopping consolidated net loss of Rs 26,960.8 crore for the third quarter ended December 31, hit by one-time asset impairment in its struggling British arm Jaguar Land Rover.

The company had registered a net profit of Rs 1,214.6 crore in the October-December quarter of 2017-18.

Total revenue from operations, however, rose 4.36% to Rs 77,582.71 crore as compared to Rs 74,337.7 crore in the year-ago period, Tata Motors said.

On a standalone basis, the company posted PAT (profit after tax) of Rs 617.62 crore as against Rs 211.59 crore in the year-ago quarter.

Total standalone income rose to Rs 16,477.07 crore as against Rs 16,186.15 crore in the same period previous fiscal.

JLR’s revenue, however, declined 1% to £6.2 billion. 

The auto major said its profit was impacted by an exceptional item of asset impairment in JLR of Rs 27,838 crore (£3.1 billion). 

“Given the muted demand scenario and the associated impact on the financials, JLR has concluded that the carrying value of capitalised investments should be adjusted down, resulting in a non-cash £3.1 billion pre-tax exceptional charge and an overall pre-tax loss of £3.4 billion for the quarter,” Tata Motors said in a statement.

Commenting on the step, JLR chief executive Ralf Speth said, “We are announcing a non-cash exceptional charge to reduce the book value of our capitalised investments”.

The automotive industry is facing significant market, technological, and regulatory headwinds. At the same time, investment in new models, electrification and other technologies remain high, he added.

Tata Group chairman N Chandrasekaran said the company’s domestic business continues the strong momentum and has delivered market share gains as well as profitable growth. — PTI

One-time asset impairment 

• The auto major said its profit was impacted by an exceptional item of asset impairment in JLR of Rs 27,838 crore 
• The company had registered a net profit of Rs 1,214.6 crore in the October-December quarter of 2017-18
• Total revenue from operations, however, rose 4.36% to Rs 77,582.71 crore as compared to Rs 74,337.7 crore in the year-ago period

.