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The company had posted a record loss of Rs 26,992.54 crore in the same quarter last year due to one-time non-cash charge for asset impairment of Jaguar Land Rover at Rs 27,838 crore.
The company reported profit in Q3FY20 even as revenue dropped 6.81 per cent to Rs 71,676.07 crore from Rs 76,915.94 crore last year. Ebitda margins came in at 9.9 per cent for December quarter.
Tata Motors’ UK-based subsidiary, JLR, reported profit at 372 million pounds thanks to retail sales growth in China, which was up 24.3 per cent. Strong demand for the new Range Rover Evoque also helped the bottom line.
“Conditions in the automotive industry remain challenging, but we are encouraged by the recovery in our China business and the success of the new Range Rover Evoque. Our improving financial results and the cost and cash flow achievements of Project Charge will support the next phase of our pipeline of exciting new vehicles and technologies, with a choice of outstanding electrified, petrol and diesel powertrains,” JLR’s Chief Executive, Ralf Speth said.
The company said JLR expects improved profitability and cash flow for financial year 2020 with an Ebit margin of around 3 per cent, however, the developing situation with coronavirus could have some impact on this.
Tata Motors, however, reported a standalone loss of Rs 1,039.51 crore against a profit of Rs 617 crore in the year ago period. The loss was due to a slump in domestic sales. In Q3FY20 wholesales (including exports) decreased 24.6 per cent to 1,29,185 units.
The standalone revenue for the quarter decreased 33 per cent to Rs 10,800 crore, the company said.
Guenter Butschek, CEO and MD, Tata Motors, said: “The downturn in the automotive industry continued in Q3 as the economy slowed down. Despite gaining sequential market shares in M&HCV, ILCV and SCV this quarter, our financial performance was impacted due to the downturn coupled with the inventory corrections we took to get ready for BS VI.”
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