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.
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.
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."
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.