Struggling to recover from the impact of the COVID-19 pandemic, home-grown automaker Tata Motors today released the financial results for the second quarter of Financial Year 2020-21, and the company has posted a wider net loss of ₹ 307 crore, as against the net loss of ₹ 188 crore registered in Q2 FY2020. With this, the company has posted a loss for the third consecutive quarter. The company's consolidated revenue for Q2, which ended with September 30, 2020, stood at ₹ 53,530 crore, a decline of 18 per cent compared to ₹ 65,431 crore revenue generated from operations during the same period last financial year.
In its official release, Tata Motors said, "In Q2FY21 wholesales (including exports) increased 3.4 per cent to 109,958 units. The domestic volumes were down by: M&HCV -43.2 per cent, ILCV -32.5 per cent, SCV & Pick Ups -5.7 per cent and CV Passenger -74.4 per cent. Domestic passenger vehicle volumes were up 110.4 per cent. Overall domestic retails were lower than wholesales by 14.7K units as pipeline inventory in CV improves." It further said, "The PV segment has delivered stellar performance during the quarter and achieved EBITDA breakeven. CV margins though improved sequentially but continue to be impacted by lower volumes and adverse mix on a y-o-y basis."
Tata Motors' standalone loss for Q2 FY2021 stood at ₹ 1,212 crore, marginally less than the ₹ 1,281 crore loss the company posted during the same quarter in the last financial year. The company's standalone revenue, on the other hand, stood at ₹ 9,668 crore, a decline of over 3 per cent compared to ₹ 10,000 crore revenue generated between July and September 2019.
As for Jaguar Land Rover, the Tata Motors-owned luxury carmaker returned to profit with a significant positive cash flow of GBP 463 million ( ₹ 4,449 crore). In Q2, JLR's retail sales stood at 113,569 units, a growth of 53.3 per cent compared to the previous quarter, however, it saw a year-on-year decline of 11.9 per cent compared to retails sales in Q2 FY2020. The company said, "Retail sales in most markets continued to be impacted by Covid-19 and so were down 11.9 per cent in total year-on-year. China sales were particularly encouraging, up 14.6 per cent on the prior quarter and 3.7 per cent year-on-year."
Tata Motors says it look forwards to a gradual pickup in demand and supply situation on the back of overall economic recovery in the second half or FY2021. The company says that it plans to cash by rigorously managing cost and investment spends to protect liquidity and has also called out a cash improvement programme of ₹ 6,000 crore. And the company expects these actions will improve cash flows for the remainder of the year.