Tata Motors' net plunges 96%

  • Tata Motors' net plunges 96%

Tata Motors' net plunges 96%

It had posted net profit of Rs 2,952.67 crore in the same quarter of last fiscal, Tata Motors said in a BSE filing.

According to CLSA, Tata Motors reported very weak 3Q results. However, JLR's revenue in the quarter was up 13%.

"Jaguar Land Rover recorded lower wholesale volumes and relatively weaker product mix (including the run out of Discovery), and overall higher marketing expenses", Tata Motors said in a statement. A Bloomberg poll of 20 analysts had estimated a profit of Rs2,264.5 crore.

The owner of luxury auto brand Jaguar Land Rover (JLR) had reported a consolidated net profit of Rs 2,952.67 crore in the corresponding quarter a year ago.

Consolidated profit after tax (post profit / loss in respect of joint ventures and associate companies) for the nine months ended 31 December 2016 was Rs3,220 crore against Rs6,467 crore for the corresponding period past year.

In a note, brokerage Motilal Oswal Securities Ltd. (MOSL) said the company's foreign exchange losses would continue for another nine to 12 months.

Owning to demonetisation, the automaker saw demand shrinkage in the commercial vehicle segment with sales in M&HCV witnessing a fall of 9% y-o-y while LCV segment remained flat.

Notwithstanding increased passenger vehicles sales thanks to new launches such as Tiago, Tata Motors' domestic operations suffered on the back of a drop in commercial vehicles volumes. Exports grew 34.6 per cent y-o-y.

Sun Pharmaceutical fell as much as 3.4 percent after reporting its first fall in quarterly profits in a year on Tuesday, as pricing issues and supply constraints affected sales in the USA - its largest market.

On a standalone basis, the company widened its loss to ₹1,046 crore during the quarter as compared with ₹137 crore in the year ago period.

The bottomline was also dragged down by near 500 basis point dip in margins at its British cash-cow JLR, which narrowed its profit by a hefty 62 per cent at 167 million pounds from 440 million pounds a year ago. Operating profit (EBITDA) of the standalone business for the nine months stood at Rs1,229 crore with operating margin at 4.0 per cent. Loss before and after tax for the nine months ended 31 December 2016 was Rs1,603 crore and Rs1,651 crore, respectively, against Rs404 crore and Rs460 crore, respectively, for the corresponding period past year.