JLR weakness results in Rs 1049 crore loss in Q2 for Tata Motors

Last Updated: Wed, Oct 31, 2018 18:39 hrs
Tata Motors

Indian Auto major Tata Motors posted a rather sombre picture in its Q2 results on Tuesday.

The company reported a loss of Rs 1009 crores in its quarterly filing report. Last fiscal Tata Motors had posted a profit of Rs 2501 crores for its Q2 results.

Weak sales of Jaguar Land Rover have been reported as the major reason for a dipping Q2 result.

The company's revenue from operations rose by 3.3% to Rs 72112 crores as compared to Rs 69838 crores in the year-ago period.

Net profit, on a standalone basis, was reported at Rs 109 crores, while previously the company reported a net loss of Rs 283 crores in the second quarter of 2017-18.

Revenue from operations grew to Rs 17,758 crore during the quarter from Rs 13,310 crore in the same period of 2017-18. However, JLR's revenue declined by 11% to 5.6 billion pounds.

Commenting on the results, Tata Group Chairman N Chandrasekaran said the Tata Motors' domestic business continued to deliver strong improvement in operational and financial performance by implementing the Turnaround 2.0 strategy effectively.

"We have improved our market shares whilst delivering robust improvement in profitability in both the commercial vehicles and passenger vehicles and generated positive free cash flows," he added.

This strong performance in the face of an intensely competitive market situation augurs well for the future, Chandrasekaran said.

"In JLR, market conditions, particularly in China, have deteriorated further. To weather this volatile external scenario, we have launched a comprehensive turnaround plan to significantly improve our free cash flows and profitability," he added.

The leadership team at JLR is in mission mode to achieve the deliverables under this plan, Chandrasekaran said.

"With these concerted actions we remain committed to deliver an improved all-round performance from H2 FY 19," he added.