Wednesday, 21 August, 2019

Jaguar Land Rover drives Tata Motors to biggest quarterly loss

JLR snip 1 Jaguar stutters to £3.4bn loss after demand stalls
Ginger Lawrence | 08 February, 2019, 18:11

Daimler AG and BMW AG reduced profit forecasts past year amid pressures from the US-China trade war that's hit auto demand, while Hyundai Motor Co. said last month its letting workers go as it reviews production plans in the worlds biggest market. While JLR's growth in most of its key markets, including the UK, Europe and the U.S., has been satisfactory, China "has been a problem", he said. The parents net loss compared with a profit of Rs 12 billion a year earlier, and also missed the average analyst estimate that called for a profit.

The company took a non-cash charge of Rs 27,838 crore ($3.90 billion) to cover the impairment at JLR in the three months to December 31.

The fall in auto sales was mainly as a result of continued challenging market conditions in China, which was offset partially by encouraging growth in North America and the UK.

Commenting on the step, JLR Chief Executive Ralf Speth said, "We are announcing a non-cash exceptional charge to reduce the book value of our capitalised investments".

Total expenditure: Consolidated expenditure jumped to Rs 78,797.08 crore in Q3 FY19 over Rs 72,303.95 crore in the same period past year.

JLR's revenue, however, declined 1 per cent to 6.2 billion pounds.

"The turnaround 2.0 strategy is delivering well with a continuing portfolio of product launches, which are the requisite building blocks for sustainable growth", he added. At the same time, investment in new models, electrification and other technologies remains high.

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Khashoggi's remains "after having admitted that he met his death within their custody in their consular premises", she added. She had " major concerns " about the fairness of the trial proceedings and had sought an official visit to the kingdom.

Here are top takeaways from Tata Motors Q3 results. JLR's sales, which have been contracting every month since July, fell 6.4% year-on-year in the December quarter to 144,600 vehicles.

Tata Motors lost over 16% of its stock value after the Mumbai-based company reported a consolidated quarterly loss of ₹26,961 crore, the biggest in its history.

The company's sales in Europe were up slightly, despite an eight per cent drop in the overall market.

"Fiscal year 2019 so far has been a challenging period for the industry".

Tata Group Chairman N Chandrasekaran said the company's domestic business continues the strong momentum and has delivered market share gains as well as profitable growth. "It reduces growth in depreciation and amortisation by 300 million euros per annum", Tata Motors said in a release.

PB Balaji, CFO, Tata Motors, said, "The 4-7 percent guidance was for the period between FY20 and FY22".