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Tata Motors has announced a consolidated loss of Rs 9,863.75 crore during the final quarter of the previous Financial Year 2019-20. The company during the same period in FY2019 had registered a profit of Rs 1,108.66 crore.
The net income of Tata Motors between January and March 2020 stood at Rs 62,492.96 crore, which is a decline of 28 per cent compared to the same period last year when the company registered Rs 86,422.33 crore.
The standalone results of Tata Motors Limited also registered a loss of Rs 4,871.05 crore during the Q4 of FY2020. During the same period of the last financial year, the company had registered a profit of 106.19 crore.
Also, the standalone revenue of the carmaker registered a 47% decline dropping from Rs 18,561.41 crore in FY2019 to Rs 9,732.87 crore between January and March 2020.
Guenter Butschek, CEO & MD, Tata Motors, said,
"The auto industry faced strong headwinds in FY20 amidst a slowing economy due to multiple factors - liquidity crisis, high fuel prices, changes in axle load norms and BS6 transition, all leading to weak consumer sentiments and subdued demand across segments."
"Disruption in the supply chain induced by the pandemic and the nationwide lockdown in mid-March 2020 added to the problems."
"Disappointingly, even with our relentless focus on retail acceleration, 'Mission Zero' on BS6 inventory and stringent cost reduction initiatives, we have not been able to mitigate the impact on our financials."
Tata Motor's luxury car brand, Jaguar Land Rover also registered a drop in net revenue by around 24 per cent to Rs 46,403 crore (5.5 billion euros). The British brand also reported a loss of 500 million euros (equivalent to around Rs 4,276 crore).
Prof Sir Ralf Speth, JLR CEO commented,
"Jaguar Land Rover's early action to transform its business meant that as a company we were on track to meet our full-year expectations and operational and financial targets before the pandemic hit in the fourth quarter."
"We also reacted quickly to the disruption. Our immediate priority has been the health and wellbeing of our people - and this remains the case as we have now begun the gradual, safe restart of our operations."
Thoughts On Tata Motors Q4 FY2020 Financial Results
Tata Motors has been severely affected by the COVID-19 pandemic and the nationwide lockdown, which has resulted in huge losses for the company. The company does feel that the market will improve in the coming months, with the FY2021 said to fare much better.