Homegrown auto major Tata Motors has closed financial year 2019-20 (FY20) with consolidated net loss of Rs 12,070.85 crore as compared to net loss of Rs 28,826.23 crore in the previous fiscal. The consolidated total revenue of the Mumbai-headquartered company fell by 13 per cent to Rs 2.64 lakh crore as against Rs 3.05 lakh crore in FY19.
"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," Tata Motors said in a filing to the Bombay Stock Exchange on Monday.
During January-March quarter of last fiscal (Q4 FY20), Tata Motors reported consolidated net loss of Rs 9,894.25 crore as compared to net profit of Rs 1,117.48 crore in the same quarter last year. Following its return to profit in the second and third quarters, COVID-19 significantly impacted the fourth quarter, the auto major said in the exchange filing.
Consolidated net revenue declined by 28 per cent year-on-year to Rs 62,492.96 crore in the March quarter of FY20, Tata Motors said.
The consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) margin contracted 510 bps year-on-year to 4.6 per cent during March quarter.
On the standalone basis, the company posted net loss of Rs 4,871.05 crore against a profit of Rs 106.19 crore in the year ago period. The standalone revenue declined to Rs 9,732.87 crore versus Rs 18,561.41 in the year ago period.
Jaguar Land Rover, a subsidiary of Tata Motors, posted a loss of 501 million pounds before taxes. Its revenue declined 24 per cent to 5,426 million pound during the quarter YoY. JLR margin fell 500 bps to 4.8 per cent.
Going ahead, the management expects Q1 FY21 to be significantly weaker for both JLR and Tata Motors with the full impact of lockdowns reflecting in the results. "A gradual improvement in performance is anticipated in the coming quarters as we deliver our exciting product range while driving a robust cost and cash savings agenda. Actions are underway to significantly deleverage the Tata Motors Group with JLR to become sustainably cash positive from FY22 while becoming future ready," Tata Motors said.