Tata Motors Faces 62% Profit Decline Amid Market Challenges
Tata Motors reported a substantial 62.2% decline in consolidated net profit to Rs 4,003 crore for the June quarter, citing decreases in sales volume and profitability, notably within JLR. The decline was also attributed to a high base effect from previous gains in discontinued business operations.
- Country:
- India
Tata Motors encountered a significant fiscal setback for the June quarter, recording a sharp 62.2% drop in consolidated net profit, settling at Rs 4,003 crore. This downtrend was largely due to a dip in sales volumes across multiple segments, including a notable decrease in Jaguar Land Rover's profitability.
Comparatively, the auto major had achieved a consolidated net profit of Rs 10,587 crore in the corresponding period of the last year, as stated by Tata Motors Ltd's regulatory filing. The total revenue from operations slightly decreased to Rs 1,04,407 crore compared to the previous year's Rs 1,07,102 crore.
The company's financials were also affected by the amalgamation process that saw Tata Motors Finance Ltd merging into Tata Capital Ltd, which prompted a book value adjustment and a high base effect from earlier gains due to the sale of discontinued operations.
(With inputs from agencies.)
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