Impacted by a weak domestic market and tax reversals, Tata Motors posted a disappointing 7.1 per cent fall in consolidated net profit at ₹3,291 crore in the second quarter ended September 30.
The Mumbai-based company had recorded a net profit of ₹3,542 crore during the same quarter a year ago.
Its consolidated revenues for the reporting quarter rose 6.5 per cent to ₹60,564 crore (₹56,867 crore).
“In India, some tax reversals of credits impacted net profit. This is more of an accounting provision and not tax incidence,” Chief Financial Officer C Ramakrishnan said at a press conference.
On a standalone basis, Tata Motors’ net loss rose to ₹1,846 crore (₹804 crore). Subdued activity in the infrastructure and manufacturing sectors as well as the high interest rate regime hit operations during the quarter.
Discounts, which are still high, continue to impact the medium and heavy commercial vehicle segment, said Ravindra Pisharody, Executive Director (Commercial Vehicles Business Unit) at Tata Motors. During the quarter under review, the company’s consolidated profit before tax rose 19.2 per cent to ₹5,671 crore (₹4,756 crore).
JLR net downFor Jaguar Land Rover (JLR), the British luxury car manufacturer which Tata Motors acquired in 2008, net profit also fell to £450 million (£507 million) during the quarter.
The company’s revenues rose 4.2 per cent to £4,808 million (£4,612 million) on higher vehicle sales during the quarter.
The shares in Tata Motors closed down 0.47 per cent at ₹523.80 on the BSE on Friday.