Mumbai: Tata Motors said on Monday its consolidated net profit almost halved in the quarter ended March 31 to Rs 1,117 crore compared to a profit of Rs 2,125 crore in the same period a year ago.
The company's revenue from operations fell to Rs 86,422 crore compared to Rs 89,929 crore in the same period, it said in a statement.
Jaguar Land Rover, that contributes the bulk of Tata Motors' profit, is facing a tough time across geographies. In China, its fastest growing market, sales have been declining due to slowdown in the economy. In Europe too, demand has slow due to confusion around Brexit and clampdown on diesel automobiles.
"Q4 FY19 has been extremely tough with market sentiments remaining muted, impacting demand across segments," said Guenter Butschek, Managing Director and Chief Executive Officer of Tata Motors. "The industry outlook is not going to be anything different in the short term due to multiple uncertainties."
To mitigate this impact, the company said it has strengthened actions under the ongoing turnaround. "With intense sales activation, new product launches, continued thrust on cost reduction, we have been able to improve our business performance across the board and post strong financial results for the fiscal while improving our market shares," said Butschek.
Passenger vehicles have been able to close FY19 with EBIDTA breakeven. The electric vehicles business has started making early inroads into the market and is set to grow. "With our updated vision of becoming the most aspirational brand, consistently winning in commercial, passenger and electric vehicles, we remain optimistic for fiscal year 2020," said Butschek.
Last quarter, Tata Motors had posted a Rs 26,993 crore loss -- the largest-ever loss reported by an Indian company -- mainly due to a non-cash write-off in the value of Jaguar Land Rover.
Within India, car manufacturers have been facing a slowdown. A liquidity crunch due to Infrastructure Lending & Financial Services (IL&FS) crisis has spilled over to the auto industry as a large number of purchases are made through vehicle finance.