Tata Motors posts net loss of Rs 1,516 cr in Q3 amid chip shortage
The firm had posted a net profit of Rs 2,906 crore a year earlier when an easing of coronavirus-related restrictions had led to a pick-up in sales.
- Jan 31, 2022,
- Updated Jan 31, 2022 4:39 PM IST
India's largest automaker Tata Motors on Monday reported a loss of Rs 1,516 crore (attributable to shareholders) for the quarter ending 31 December, 2021, as semiconductor shortages crimped the Indian automaker's ability to take advantage of the pandemic-driven demand for personal vehicles.
The firm had posted a net profit of Rs 2,906 crore a year earlier when an easing of coronavirus-related restrictions had led to a pick-up in sales. Sequentially, the automaker's loss narrowed from Rs 4,412 crore in the second quarter of this fiscal year.
However, the recovery was short-lived as acute semiconductor shortages and supply chain disruptions delayed production, and Tata Motors slipped back to losses.
Tata Motors' consolidated total revenue from operations declined nearly 5 per cent to Rs 72,229 crore versus Rs 756,54 crore from a year ago.
Meanwhile, the consolidated EBITDA, or earnings before interest, taxes, depreciation, and amortization margin stood at 12 per cent.
On a standalone basis, the automaker reported a net profit of Rs 175.85 crore in the period under review as against a net loss of Rs 638.04 crore in the third quarter of 2020-21 fiscal.
Revenue from operations stood at Rs 12,352.78 crore in the third quarter as compared with Rs 9,635.78 crore in the same period previous fiscal.
In terms outlook for next quarter, the automaker said that the demand remains strong despite near term concerns from Omicron spread.
"The semiconductor supply situation is improving gradually whilst inflation worries persist. Over the last two years, the resilience of the business has improved, and it is now intrinsically stronger. With concerted actions in place to address the near-term supply and cost challenges, we expect performance to improve further in Q4FY22 and beyond," Tata Motors said in a statement.
Automakers worldwide have been roiled by the chip shortage, along with supply chain disruptions, COVID-19 restrictions and rising raw material prices after a short-lived recovery towards the end of 2020.
Retail sales at JLR, which accounts for most of Tata Motors' revenue, fell 37.6% in the December quarter from a year earlier, and production volumes jumped 41% sequentially, the company said.
Ahead of the quarterly earnings, shares of Tata Motors were trading higher. The stock has gained 5.33% in the last four days. The large cap stock touched an intraday high of Rs 507, rising 1.93% against the previous close of Rs 497.40 on BSE.
On Monday, the automaker's shares ended 4.40% higher at Rs 517.50 apiece on BSE.
India's largest automaker Tata Motors on Monday reported a loss of Rs 1,516 crore (attributable to shareholders) for the quarter ending 31 December, 2021, as semiconductor shortages crimped the Indian automaker's ability to take advantage of the pandemic-driven demand for personal vehicles.
The firm had posted a net profit of Rs 2,906 crore a year earlier when an easing of coronavirus-related restrictions had led to a pick-up in sales. Sequentially, the automaker's loss narrowed from Rs 4,412 crore in the second quarter of this fiscal year.
However, the recovery was short-lived as acute semiconductor shortages and supply chain disruptions delayed production, and Tata Motors slipped back to losses.
Tata Motors' consolidated total revenue from operations declined nearly 5 per cent to Rs 72,229 crore versus Rs 756,54 crore from a year ago.
Meanwhile, the consolidated EBITDA, or earnings before interest, taxes, depreciation, and amortization margin stood at 12 per cent.
On a standalone basis, the automaker reported a net profit of Rs 175.85 crore in the period under review as against a net loss of Rs 638.04 crore in the third quarter of 2020-21 fiscal.
Revenue from operations stood at Rs 12,352.78 crore in the third quarter as compared with Rs 9,635.78 crore in the same period previous fiscal.
In terms outlook for next quarter, the automaker said that the demand remains strong despite near term concerns from Omicron spread.
"The semiconductor supply situation is improving gradually whilst inflation worries persist. Over the last two years, the resilience of the business has improved, and it is now intrinsically stronger. With concerted actions in place to address the near-term supply and cost challenges, we expect performance to improve further in Q4FY22 and beyond," Tata Motors said in a statement.
Automakers worldwide have been roiled by the chip shortage, along with supply chain disruptions, COVID-19 restrictions and rising raw material prices after a short-lived recovery towards the end of 2020.
Retail sales at JLR, which accounts for most of Tata Motors' revenue, fell 37.6% in the December quarter from a year earlier, and production volumes jumped 41% sequentially, the company said.
Ahead of the quarterly earnings, shares of Tata Motors were trading higher. The stock has gained 5.33% in the last four days. The large cap stock touched an intraday high of Rs 507, rising 1.93% against the previous close of Rs 497.40 on BSE.
On Monday, the automaker's shares ended 4.40% higher at Rs 517.50 apiece on BSE.