Tata Motors posts Rs 1,049 crore loss in Q2

Homegrown automaker Tata Motors on Wednesday posted a loss of Rs 1,048.80 crore for quarter ended September 30. The firm had posted a profit of Rs 2,482.78 crore in the corresponding quarter last year. Analysts in an ET NOW poll had estimated the loss figure at Rs 640 crore.The company said that its luxury unit Jaguar Land Rover (JLR) reported a loss of 101 million pounds for September quarter. Free cash flow (automotive) for the quarter was negative at Rs 4,357 crore, reflecting lower operating profits at JLR.Challenging market conditions in China dragged JLR’s sales 13.2 per cent to 1,29,887 units, while wholesale sales dropped 14.7 per cent to 1,30,652.However, Tata Motors' total income increased to Rs 72,729.30 crore in Q2FY19 over Rs 70,344.76 crore in Q2FY18.On a standalone basis, the company reported a profit of Rs 109.14 crore for the quarter under review against a loss of Rs 283.37 crore last year.“Our solid all-around performance in Q2FY19 has impressively demonstrated that Tata Motors ‘Turnaround 2.0’ is in full swing. The continued improvements were made possible due to a robust product and innovation pipeline, strong market activation, rigorous cost reductions and structural process improvements,” said Guenter Butschek, CEO and MD, Tata Motors.The company announced its results post market hours on Wednesday. Earlier, shares of the company closed 0.76 per cent down at Rs 178.65, while Sensex advanced 550.92 points, or 1.63 per cent, to 34,442.05.On quarterly results, Tata Sons Chairman N Chandrasekaran said: “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. This strong performance in the face of an intensely competitive market situation augurs well for the future.”“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. The leadership team at JLR is in mission mode to achieve the deliverables under this plan. With these concerted actions we remain committed to deliver an improved all-round performance from H2 FY 19,” Chandrasekaran.

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