Tata Motors disappointed the markets today. The company for Q1FY19 reported a consolidated net loss of Rs.1863 crore v/s net profit of Rs.3199 crore in previous Q1. This was the worst quarterly loss since Dec’09.
The loss was mainly on account of its losses at Jaguar Land Rover (JLR), which posted a net loss of £210 million despite gaining retail market share by 6%.
But it did well on the Indian market front, reporting a pre-tax profit of Rs.1,464 crore v/s loss of Rs.463 crore (YoY). The Indian segment reported a 83% jump in revenue at Rs.16,803 crore and PAT came in at Rs.1188 crore.
At JLR, the company faced many issues like China duty impact and diesel concerns in the U.K. and Europe, along with Brexit.
In a move to improve earnings through cost cuttings, Tata Motors has decided to restructure its Thailand business – it has decided to stop manufacturing operations from this financial year. Last year, the company suffered a loss of Rs.190 crore in Thailand and this much money would be saved.
The stock price had slumped over 6% to Rs.248 in the opening bell session, just a tad away from its current 52-week low of Rs.247.55. Buying came in at these levels and the price has recouped to Rs.261 levels presently, down 1.2%.