Automobile major Tata Motors posted a consolidated net loss of Rs 9,894 crore for the fourth quarter (January-March), the company said on Monday in an exchange after market hours. In the corresponding quarter last year, Tata Motors had reported a profit of Rs 1,117 crore. The company's total revenue from operations fell 27.7 per cent to Rs 62,493 crore during the quarter. The Jaguar Land Rover (JLR) segment of Tata Motors reported a loss of 501 million pound at profits before tax (PBT) level for the quarter. For the full year 2019-20, Tata Motors' loss stood at Rs 12,071 crore against loss of Rs 28,826.23 crore in previous year.
The automaker attributed the losses to weak demand and coronavirus-induced lockdowns. According to news agency Reuters, sales at JLR, which rakes in most of the company's revenue, were heavily impacted during the quarter as some of its key markets such as China and Europe went into lockdowns, while also disrupting supply chains.
"In India, demand which was already adversely impacted by the general economic slowdown, liquidity stress and stock corrections due to BSVI transition, was further affected by the lockdown. Steep volume decline, particularly MHCV, and resulting negative operating leverage impacted profitability and cash flows," the company said in the filing.
It further said that the company's performance in the first quarter of this financial year (2020-21) is expected to be "significantly weaker" due to the "full impact of lockdowns".