Lower-than-expected profits and the tussle among the company’s Directors in backing chairman Cyrus Mistry saw the Tata Motors stock plunge 11 per cent last week.
For the quarter ended September 2016, consolidated revenue of Tata Motors grew 7 per cent year-on-year to ₹65,940 crore. Although the revenue for the domestic business remained flat, JLR’s revenues grew 23 per cent, while its retail volumes grew 29.3 per cent.
At the net profit level, the standalone domestic business continued to make losses this quarter too. Strong growth at JLR helped the company record a consolidated profit of ₹848 crore (as against a consolidated loss of ₹1,740 crore in the September 2015 quarter). Profits could have been higher but for the realised hedging losses of about ₹3,510 crore, an adverse impact of commodity derivatives to the extent of ₹187 crore and a one-time provision for new customer quality programmes at JLR.