Tata Motors posts 1 billion dollar loss as Jaguar costs hit bottom line
Mumbai : Tata Motors announced a Rs 7,600 crore ($1 billion) loss despite a strong performance in the first quarter of 2021. This is mainly because of the restructuring cost involved in its British luxury car brand Jaguar Land Rover (JLR).
A consolidated net loss of Rs 76 crores has been registered by the company during January-March period.
The auto giant's revenues jumped 42 percent, but exceptional costs worth $2.13 billion (Rs 15,559 crore), related to its restructuring of JLR hurt its profitability. "It was a strong and resilient all-round performance for us, despite the pandemic," P.B. Balaji, chief financial officer of Tata Motors, told reporters in a post-earnings conference call.
Last year, the company had reported loss for three consecutive quarters due to lockdown in several parts of the world. Tata Motors' revenue soared around October 2020 till March this year. Second wave in India has hampered demands of vehicle yet again.
"We will continue to remain vigilant about the evolving Covid situation," the company's CEO and managing director Guenter Butschek said in a statement.
Britain's largest car manufacturer JLR reported a 20.5 percent increase in revenue, led by a strong sales performance in China. In February, JLR said it would lay off 2,000 employees in the financial year 2021-22, with a plan to go fully electric from 2025.