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Tata Motors has posted a 56.19 per cent fall in consolidated net profit at ₹1,717 crore in the fourth quarter ended March 31. This is primarily due to a £220-million foreign exchange loss and depreciation on product replacements. Slowdown in China, the largest market for Jaguar Land Rover, also impacted the company.
The country’s largest automotive company had posted a net profit of ₹3,918 crore during the same quarter a year ago.
“The net profit was impacted partly due to the debt and partly because of mark-to-market on unrealised hedges,” said Vijay B Somaiya, Vice-President and Head (Treasury and Investor Relations).
During the quarter under review, the Mumbai-based company’s consolidated revenue rose 3.5 per cent to ₹67,576 crore from ₹65,317 crore recorded during the comparable year-ago period. On a consolidated basis, the company has a debt of ₹73,600 crore as of March 31, while that on a standalone basis stood at ₹21,130 crore.
The company aims to reduce debt by using half of the ₹8,000 crore it raised by way of rights issue, Somaiya added.
The management said margins could continue to be under pressure in the current and upcoming quarter because of a slow down in the overall Chinese auto market. Tata Motors has, however, not yet changed the prices of its products in China, said JLR Chief Executive Ralf Speth. Jaguar Land Rover, the company’s British subsidiary, which is running out of capacity across its three plants in India, is scouting for a new country to set up a plant.
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