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Brexit impact continued to weigh on the results of Indian corporates with its latest victim being Tata Motors that saw consolidated net profit for the first quarter ended June 30 falling over 57 per cent from a year ago due to forex loss.
Consolidated net profit in the quarter fell to ₹2,260 from ₹5,254 crore a year ago, while net sales rose 10 per cent to ₹66,101 crore from ₹60,094 crore in the same last quarter last year.
The company’s total costs rose 18 per cent to ₹63,994 crore.
On a standalone basis, profit fell 91.12 per cent in the quarter to ₹25.75 crore from ₹289.84 crore a year ago. Net sales rose 10.22 per cent to ₹11,311 crore.
The sales (including exports) of commercial and passenger vehicles for the quarter grew 8 per cent to 1,26,839 units.
The Tata Group company’s recently launched hatchback received a warm response and helped the passenger vehicle sales grow by 6.3 per cent.
More specifically, the car segment grew 15.1 per cent from a year ago period on the back of strong response to the recently launched Tiago, Tata Motors said.
JLR sales up Tata Motors sold 1.34 lakh units of Jaguar Land Rover, higher by 17 per cent year over year due to strong response to Jaguar F-PACE and XE, while domestic sales increased 7 per cent led by 10 per cent growth in the commercial vehicle business.
“Higher volumes in both standalone as well as Jaguar Land Rover business more than offset by the adverse FX impact of Rs 2,296 crore and adverse commodity derivatives impact of ₹167 crore in the operating profit mainly in the Jaguar Land Rover business, lower local market incentive in the Jaguar Land Rover business as compared to the corresponding quarter last year and higher depreciation and amortisation expenses as compared to the corresponding quarter last year,” the company said.
Tata Motors scrip closed at ₹514.70, up 4.24 per cent, on the BSE.
Tata Motors said subsequent to approval by shareholders at the annual general meeting held on August 9, the company’s board has approved by way of an enabling resolution raising of ₹3,000 crore.
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