Tata Motors Ltd. suffered a loss for the third straight quarter, missing estimates, as supply shortages and rising input costs hurt production even as demand rose.
The automaker’s loss widened to Rs 4,442 crore in the quarter ended September from the Rs 3,509.91-crore loss in the preceding three months, according to its exchange filing. A consensus of analysts tracked by Bloomberg had pegged the metric at Rs 3,681 crore.
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Highlights (QoQ)
- Revenue fell 8% to Rs 61,379 crore, against the Rs 59,088-crore forecast.
- Earnings before interest, tax, depreciation and amortisation declined 21% to Rs 4,117 crore.
- Margin contracted to 7% from 8%.
India’s third-largest carmaker overall dispatched 50% more vehicles sequentially at 1.62 lakh units in July-September in the domestic market. That, however, was on a low base as the second Covid-19 wave disrupted production in the preceding quarter.
Domestic car sales rose 30.3% over the three months ended June.
Retail sales of Jaguar Land Rover, which contributes 80% to Tata Motors’ revenue, however, fell 25.5% sequentially to 92,710 units in the quarter under review because of a global chip shortage.
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The company said in a statement while the global semiconductor shortage and commodity inflation will continue to play a role in the near term, the company’s performance is expected to improve gradually in the second half of the ongoing fiscal as supply-chain problems and the pandemic eases.
Shares of Tata Motors rose 0.4% on Monday before the earnings were announced, compared with a 1.4% rise in the benchmark S&P BSE Sensex.
