Mumbai-based automobile maker Tata Motors declared its first quarterly results for the financial year 2021-22. The company reported a consolidated net loss of Rs 4,451 crore on a year-on-year (y-o-y) basis. This however compares with a consolidated net loss of Rs 8,438 crore the company reported in the same quarter of the last year.
The revenue of the company increased by 107.6% on a y-o-y basis to Rs 66,406 crore, but this was largely because of a low base in the year-ago quarter. The past year was marred by lockdowns imposed by the pandemic and the shutting down of several of its production units and dealerships across the globe.
Jaguar Land Rover, which is the cash-cow for Tata Motors saw its revenues increase by 73.7% y-o-y to 4.96 billion pound sterling with demand boosted by the reopening of markets in several developed economies like China, the US and Europe.
The shares of TATA Motors were reduced by 1% to Rs 292.75 on the NSE when the markets closed on the day.
In the short term, the company is expecting the shortage of conductors, commodity price inflation and the uncertainty of the pandemic situation to impact its sales. But as the situation improves, the company sees its results improve too. The company expects to become zero-debt by the financial year 2024. It also expects the long-term prospects to improve as the pandemic eases and the demand for its cars to increase.
Tata Motors is a brand in the automotive sector. Though the company reported a loss, the demand for its vehicles is steadily growing. Jaguar Land Rover continues to be the marquee brand for the company and retains its demand in the global market. JLR contributes about 80% of the company’s revenue.