Shares of luxury car maker owner Jaguar Land Rover, Tata Motors, fell as much as 5.85 per cent to hit an intraday low of Rs 313 on the National Stock Exchange after it reported surprise loss in quarter ended March 2021. On a consolidated basis, Tata Motors reported net loss of Rs 7,605 crore against an expectation of profit of Rs 2,672 crore, according to Refinitiv IBES data. (Track Tata Motors share price here)
The company's revenue from operations came in at Rs 88,628 crore for the fourth quarter, up 42 per cent from the revenue of Rs 62,492 crore clocked in the same quarter last year.
On a standalone basis, Tata Motors reported a net profit of Rs 1,646 crore as against a loss of Rs 4,871 crore in the year-ago period.
During the quarter Tata Motors undertook $2.05 billion charge at the luxury Jaguar Land Rover (JLR) unit, warning that a global chip crunch and surging COVID-19 cases in the country would hurt its business.
Like other carmakers in India, Tata Motors was navigating the pandemic's impact on sales when a global chip shortfall piled on more pressure, forcing it to suspend operations at two JLR car factories in April.
The disruptions have become more difficult to mitigate and are now impacting production plans for the first quarter, Tata Motors said.
"The CV business consistently posted sequential quarter on quarter growth on back of improved consumer sentiments, buoyancy in e-business, firming freight rates and higher infrastructure demand including road construction and mining. We have successfully improved our operational and financial performance by reducing cost," said CEO and Managing Director of Tata Motors, Guenter Butschek.
As of 9:29 am, Tata Motors shares traded 4.47 per cent lower at Rs 317.60, underperforming the Nifty which was down 0.6 per cent. The stock was also the top loser in the Nifty 50 basket of shares.