Tata Motors reported a consolidated net loss of ₹26,960 crore for the third quarter of this fiscal due to asset impairment in its British arm Jaguar Land Rover (JLR). This is the third straight quarter when the company has reported losses.

Non-cash write off worth ₹27,838 crore for JLR, uncertainties due to Brexit and slowing sales in China impacted the company’s performance. JLR accounts for nearly 70 per cent of the company’s revenues.

The company had posted a net profit of ₹1,214.6 crore in the corresponding quarter of last fiscal. However, total revenue from operations rose 4.36 per cent to ₹77,582.71 crore from ₹74,337.7 crore in the previous year.

PB Balaji, Chief Financial Officer, Tata Motors, said the EBIT (earnings before interest and tax) margin for the fiscal year 2018-19 ending March 31 is expected to be marginally negative compared with an earlier guidance of breaking even. JLR retail sales in January 2019 were 43,733 vehicles, down 10.9 per cent compared to January last year.

“...Overall performance continued to be impacted by challenging market conditions in China. We continue to work closely with Chinese retailers to respond to current market conditions with a ‘Pull’-based approach to vehicle sales,” JLR CEO Ralf Speth said in a statement on Thursday.

“We are now taking clear and decisive actions in JLR to step up its competitiveness, reduce costs and improve cash flows and make the business fit for the future,” Balaji told reporters on a conference call. “We see a gradual improvement in China going forward. We are happy to see our numbers stabilise now in terms of offtake.” Fitch Ratings, on Wednesday, placed the credit rating of Tata Motors Ltd on negative watch citing risks for the British unit.

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