Q4FY18 Results: Tata Motor dips on back of weak JLR numbers
Leading automaker Tata Motors extended losses after reporting 50 per cent decline in profits on a YoY basis.
For Q4FY18, Jaguar Land Rover (JLR) JLR, which accounts for 80 per cent of Tata Motor’s revenues, reported retail volume drop of 6.8 per cent at 1.72 lakh units and wholesale volume rise of 2 per cent at 1.62 lakh units. For FY18, wholesale volume grew by 2 per cent to 5.45 lakh units. Expect in China, JLR sales are facing pressure in the UK, Europe and the US markets.
The company reported 49.8 per cent decline in consolidated net profit at Rs. 2,175 crore for Q4FY18 as compared to Rs. 4,336 crore in Q4FY17. The profits were impacted by a one-time provision for impairment and steep rise in expenses on the back of increase in cost of materials. Revenue was at Rs. 91,279 crore as compared to Rs. 77,272 crore, which is up 18.2 per cent. The company’s EDITDA was at Rs. 11,250 crore as against Rs. 10,801 crore, up a 3.7 per cent.
The company’s management expressed that the company is facing challenges arising out of Brexit in the UK and business cyclicality in the US market, while business outlook for China and India remain are strong.
In the morning session, the stock was trading down by 6.47 per cent at Rs. 289.25 per share at 10: 04 hours on Thursday.