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Tata Motors Records Loss In Q1 FY2021 As Coronavirus Crisis Dents Sales

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Tata Motors has said that sales were adversely hit by the coronavirus crisis which has impacted both its domestic and global business, leading to a consolidated loss of 56.42 per cent.

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Tata Motors has recorded a loss of 56.42 per cent in Q1 FY2021.

Highlights

  • Tata Motors has recorded a loss of 56.42 per cent in Q1 FY2021.
  • It said that sales were adversely hit by the coronavirus crisis.
  • JLR's retails sales went down by 42.44 per cent in the same quarter.

Tata Motors has reported a consolidated loss (including Jaguar Land Rover business) of 56.42 per cent in the first quarter of FY2021 at ₹ 8443.98 crore as compared to a loss of ₹ 3679.66 crore it recorded in the same quarter last year. The company's total revenue for the period at ₹ 31,983.06 crore in Q1 as compared to ₹ 61,466.99 crore which it recorded a year ago, witnessing a decline in revenue of ₹ 47.96 per cent. Tata Motors EBIDTA margin in the same period contracted 3.5 per cent.

Also Read: Tata Motors' Global Wholesales Decline By 64% In Q1, FY2021

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Tata Motors sales were hit due to the coronavirus crisis.

The company has said that sales were adversely hit by the coronavirus crisis which has impacted both its domestic and global business, including the JLR business. Talking about its standalone business, sales and production were completely shut in April and resumed partially in May. In Q1FY21 wholesales (including exports) decreased 81.5 per cent at 25,294 units. At the end of the quarter, the company has managed to maintain a liquidity position of ₹ 6,09,000 crore.

Also Read: Tata Motors Introduces Special Finance Schemes For Tiago, Altroz, & Nexon

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Guenter Butschek, CEO and MD- Tata Motors sees further disruptions due to supply chain bottlenecks.

Guenter Butschek, CEO and MD- Tata Motors said, "The COVID-19 pandemic has deeply impacted the auto industry in Q1FY21. 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. Even as we continue to address the challenges, we see some disruption due to the intermittent shutdowns and supply chain bottlenecks. We have witnessed some green shoots emerging in PV owing to some pent up demand pre COVID, and are hopeful for a full recovery of the CV industry by end of the fiscal year, with a gradual pickup of demand, aligned to the economic recovery."

Also Read: Tata Motors Registers 61 Per Cent Decline In PV Sales In Q1 FY2021

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Jaguar Land Rover managed to achieve breakeven in the China market.

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The COVID-19 situation resulted in temporary retail and plant shutdowns of JLR as well, significantly impacting sales and profits of the carmaker despite achieving breakeven in the China market. Its retails sales went down by 42.44 per cent at 74,067 vehicles in the same quarter, recording a loss of around ₹ 41.3 crore.

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