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Tata Motors on Friday reported a consolidated net loss of ₹8,443.98 crore for the first quarter of FY21, hit hard by the Covid pandemic. It had posted a consolidated net loss of ₹3,679 crore during the same period last year.
The company’s total revenue from operations fell 48 per cent to ₹31,983.06 crore (₹61,466.99 crore) while the total comprehensive loss amounted to ₹15,883 crore (₹5,077 crore).
On a standalone basis, Tata Motors reported losses of ₹2,190 crore compared to a loss of ₹97 crore in the flirst quarter of ast year.
Revenues were down to ₹2,821 crore from ₹13,753 crore during the same period.
As part of Tata Motors’ turnaround strategy, its board on Friday approved the hiving off of the passenger vehicle business into TML Business Analytics Services Ltd on a slump sale basis for ₹9,417 crore through the issuance of equity shares.
PV business spin-off
The company had announced the spin-off in March, covering the PV business that includes electric vehicles. The spin-off could be a precursor to a potential stake sale, according to analysts.
PB Balaji, Chief Financial Officer at Tata Motors, while addressing reporters post the results announcement, said the company is open to partnerships, but will look at it in the medium to long term.
“In the midst of Covid-19, our top priority is to turn the business around and deliver cash flows. The PV business will turn cash positive by FY23 and that will happen even without a partner — that is the internal target we are working towards and we are confident of achieving that,” he explained.
The nationwide lockdown heavily impacted volumes in India, the company said in a regulatory filing.
As for Jaguar Land Rover, the quarter reflected the full impact of Covid-19 with temporary shutdown of plant and retailers for much of the period.
“The pandemic has deeply impacted the auto industry in Q1 FY21. Even as we continue to address the challenges, we see some disruptions due to the intermittent shutdowns and supply chain bottlenecks,” said Guenter Butschek, CEO and MD, Tata Motors.
“We have witnessed some greenshoots emerging in the PV segment owing to some pent-up demand pre-Covid, and are hopeful for a full recovery of the CV industry by the end of the fiscal year,” he added.
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