Tata Motors said on Tuesday its consolidated net loss totalled Rs 7,605 crore for the quarter ended March despite a sharp growth in revenue.
It had posted a loss of Rs 9,894.2 crore in the corresponding period last year and profit of Rs 2,906 crore in the December 2020 quarter.
The automobile manufacturer’s revenue from operations moved up 42 per cent in Q4 FY21 at Rs 88,628 crore from Rs 62,493 crore in Q4 FY20.
On a standalone basis, the company reported a net profit of Rs 1,646 crore as against a loss of Rs 4,871 crore in the same period. Significantly, finance costs increased in FY21 by Rs 854 crore to Rs 8,097 crore due to higher gross borrowings.
“While demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from Covid-19 lockdowns in India and semi-conductor shortages worldwide,” the company said in a statement.
“We expect Q1 FY22 to be relatively weak due to this as well as rising commodity inflation and expect to improve gradually from the second quarter.” The company said business demonstrated strong resilience in the face of adversity and its fundamentals are strong. “We will remain agile to address these challenges and drive consistent, competitive and cash accretive growth over the medium to long term.” However, Guenter Butschek, CEO and MD of Tata Motors, said the commercial vehicle business consistently posted sequential quarter-on-quarter growth on back of improved consumer sentiments, buoyancy in e-business, firming freight rates and higher infrastructure demand including road construction and mining.
“We have successfully improved our operational and financial performance by reducing cost,” he said. “We will review and plan for the critical raw materials to cater to a volatile demand outlook while working closely with our ecosystem partners to meet the same.”
Source link
