Tata Motors has posted a 25.5 per cent fall in consolidated net profit at ₹3,581 crore for the third quarter ended December 31, impacted by one-time provisions. The company had posted a net profit of ₹4,805 crore during the corresponding quarter a year ago.
The company posted a net loss of Rs 2,123 crore on a standalone basis, compared with a net profit of Rs 1,251 crore.
The losses were due to a one-time provisioning of about Rs 300 crore for Singur plant, and another Rs 300 crore for certain exceptional items including inventory write-offs, Tata Motors Chief Financial Officer C. Ramakrishnan said.
During the quarter under review, the company's consolidated revenues rose 9.6 per cent to Rs 69,973 crore, compared with Rs 63,853 crore during the same period a year ago.
"The revenues grew despite a continuing weak operating environment in the standalone business, which was offset by increase in wholesale volumes, richer product mix” said Chief Financial Officer C. Ramakrishnan.
In the medium and heavy commercial vehicles (M&HCV) segment it posted a 42.9 per cent growth, helped by firm freight rates and lower fuel rates. However, Light Commercial Vehicles (LCV) continued to be "impacted" during the quarter, while overall commercial vehicle sales also fell by 8.5 per cent.
The company's passenger vehicle segment grew by 4.6 per cent during the reporting quarter, while the industry grew by 4.3 per cent during the same period.
JLR
Jaguar Land Rover's, the company's British subsidiary, net profit for the quarter under review fell to to £593 billion from to £619 million posted during the comparable year ago quarter. The company's revenues grew by 10 per cent to £5879 million.
"This quarter has seen robust financial performance, further under pinning our on going investments in new product creations, capital expenditure and international expansion strategy," said Ralf Speth, global chief executive officer, Jaguar Land Rover.
Outlook
Tata Motors cash flow for FY16 would be negative due to continued investments, Ramakrishnan said.
On M&HCV, Tata Motors will see more "comprehensive" and sustainable growth in FY16, while sports utility segment is expected to start looking up only by the second half of the financial year.
Ahead of announcement, shares in Tata Motors closed down 0.39 per cent at ₹589.55 on Thursday in a weak equity market.