Tata Motors Lost Rs 17 Crore/Day In Last 90 Days; Consolidated Operating Profit Was Rs 7400 Crore
The ongoing pandemic has brought in disruptions all over the world. It has heavily disrupted the supply chains. And many businesses are suffering because of it. And Indian behemoth Tata Motors is no exception for this suffering.
Tata Motors reports a consolidated net loss of Rs. 1516 in last quarter
Recently, Tata Motors reported a consolidated net loss of Rs 1,516 crore for the quarter ended December as against a net profit of Rs 2,906.5 crore. The company reported a decline of 4.5 percent year-on-year in consolidated revenues for the reported quarter to Rs 72,229 crore.
Analysts had expected the automaker to report a consolidated net loss of Rs 2,200 crore. Even though on the surface the loss looks heavy, the trend is declining. In the previous quarter, the company had reported a consolidated net loss of Rs 4,441.6 crore. This is the fourth consecutive quarter of consolidated net loss reported by the company.
This underlines the damage caused by the shortage of semiconductors faced by the global automobile industry. The semiconductor shortage is expected to continue through 2022 but is expected to gradually improve as capacity within the supply base increases.
The company shows some positive signals as well
The India business of Tata Motors reported a 43.3 percent on-year growth in revenues to Rs 20,959 crore for the December quarter. This is reflecting strong demand for the brand in the Indian market.
At the same time, the company reported a pre-tax loss of Rs 834 crore reflecting the impact of higher input costs on the company’s operations.
“Sharp commodity inflation continues to remain a challenge. We continue with our efforts to unlock the supply bottlenecks by working proactively with our vendor partners,” the company said in a statement.
Girish Wagh, executive director at Tata Motors, said, “We expect the demand for commercial, passenger, and electric vehicles to sustain even as concerns related to supply of semiconductors, high input costs, and rising instances of covid keep the overall situation fluid”.
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