Jaguar Land Rover parent Tata Motors booked a wider than expected loss in the fiscal fourth quarter ended 31 March, 2020 compared to a net profit in the same quarter a year ago.
The company posted a consolidated Q4 net loss of INR9,863.75 crore (GBP1,031,057,787) after reporting a net profit of Rs 1,108.66 crore in the same period last year. Analysts in an Economic Times of India poll had projected a net loss of INR1,300 crore.
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Operating revenue dropped 28% to INR62,493 crore in the fourth quarter.
A Tata Motors statement showed full year revenue fell 14% to INR261,068 crore.
Full year JLR retail sales were down 12% to 508,700 units and revenue off 5% to GBP23bn. Pretax loss was GBP422m.
Tata Motors retail sales of commercial vehicles were down 22% to 360,800 units while passenger vehicle volume fell 25% to 148,800 units.
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By GlobalDataRevenue was down 37% to INKR43,900 crore. EBIT fell 7.1% and pretax loss was INR7,127 crore.
“After Jaguar Land Rover’s return to profit in the second and third quarters, which reflected improvements achieved through its transformation programme, fourth quarter results were significantly impacted by the pandemic,” Tata said.
“Despite this, the business has improved its EBIT by 60bps and cash delivery by GBP560m over the previous year.
“Project Charge has delivered cumulative savings of GBP3.5bn.”
The automaker added: “Q1 FY21 is expected to be significantly weaker in both JLR and TML with the full impact of lockdowns being reflected in the results.
“A gradual improvement in performance is anticipated in the coming quarters as we deliver our exciting product range while driving a robust cost and cash savings agenda.”
As a result of the lower sales, JLR booked a loss of GBP501m in Q4 and GBP422m for the full year on revenues of GBP5.4bn and GBP23bn, respectively.
EBIT, which also excludes foreign exchange and commodity revaluation were still almost break even for the year (margin up 0.6% year on year) and cash flow was positive in Q4.
Cost and cash improvements under Project Charge increased by GBP600m in Q4 to bring cumulative savings to GBP3.5bn by 31 March 2020.
The automaker has now increased the Charge target for March 2021 to GBP5.0bn, implying GBP1.5bn of cost and cash savings in FY21.
“While the outlook remains uncertain the company expects a gradual recovery of sales and improving cash flows for the remainder of the year,” Tata said.
