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Slowing sales in China and losses related to vehicles damaged in a port explosion dragged down Tata Motors to a loss of ₹430 crore during the July-September quarter.
The company had reported ₹3,290.86 crore in the same quarter of the previous fiscal.
The company said in a statement it had booked a charge of ₹2,493 crore on account of the vehicles damaged at Tianjin Port explosion in the Jaguar Land Rover business.
The explosion happened in August. The company said the process for finalising an insurance claim may take some months to conclude, so insurance and other potential recoveries will only be recognised in the future period.
Sales in China fell by 32 per cent as an economic slowdown hit the world's biggest car market.
Tata Motors’ shares closed 1.87 per cent down at ₹396 crore on the BSE.
Tata Motors reported consolidated revenues of ₹61,318 crore against ₹60,641 crore for the corresponding quarter last year.
Strong sales in the UK, Europe and North America helped in offsetting weaker sales in China and other emerging markets in the Jaguar Land Rover business.
During the quarter, MHICV (heavy vehicles) continued its growth trajectory with volume growth of 35.3 per cent on the back of the continued replacement demand, moderate pre-buying and better profitability of the freight operators.
“However, the Light Commercial Vehicle segment continued to remain weak in the quarter, due to the constrained financing environment and lack of last mile load availability,” the company said.
The domestic passenger vehicles segment grew 5.2 per cent with car segment growth of 14.8 per cent. The sales (including exports) of commercial and passenger vehicles for the quarter ended September 30, 2015, stood at 1,26,690 units, a decline of 0.4 per cent, against the corresponding quarter last year. JLR has posted a loss of £92 million during the quarter against profit of £450 million pound in the year-ago period due to exceptional charge, lower EBITDA, higher depreciation and amortisation, as well as unfavourable revaluation of foreign currency debt and unrealised hedges.
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