Domestic business sees over ₹2,000 cr. annual profit; challenges in China for JLR
Tata Motors Group has reported a lower consolidated net profit of ₹1,109 crore for the fourth quarter ended March 31, 2019 compared to a net profit of ₹2,175 crore in the same period last year.
The 49% decline was on account of an overall slowdown in the automotive industry and headwinds witnessed by JLR in China, its biggest market.
The company reported consolidated total revenueof ₹86, 422 crore in the fourth quarter, as against ₹89,928 crore in the same period last year, down 3.9%.
For the full year, the company reported a net loss of ₹28,724 crore as compared to net profit of ₹9,091 crore in the previous year. During the year, the company was impacted by an ‘exceptional item’ amounting to ₹29,600 crore leading to losses.
For the fourth quarter, Tata Motors reported standalone net profit of ₹106 crore, compared to net loss of ₹500 crore in the same period last year. For FY19, Tata Motors reported a standalone net profit of ₹2,021 crore as compared to a net loss of ₹1,035 crore, indicating a turnaround in the commercial and passenger vehicles business. For the fourth quarter, JLR returned to profitability with a pre-tax profit of £269 before exceptional item, as the transformation programme delivered cash and cost cash improvement, the company said.
Revenues of £7.1 billion were down £421 million year-on-year.
N. Chandrasekaran, Chairman, Tata Motors Ltd., said, “Our domestic business delivered a resilient performance in the face of challenging market conditions. We have continued to step up our pace of innovation, improved our market share as well as profitability. The Turnaround 2.0 strategy is delivering well and I am confident that the business is getting the building blocks in place for long term success.”
“In JLR, we continue to face challenges in China, which we are addressing on priority. To weather the volatile external scenario, we are taking decisive steps to step up competitiveness, reduce break even and improve cash flows, while continuing to invest in existing products and leading-edge technologies,” he said.
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