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ET Intelligence Group: Stats are often known to conceal more than they reveal. Otherwise, when a company posts a net loss in the vicinity of $2 billion for the year, only the eternal optimist would search for positives in the red ink.
But that’s where headline numbers might be downright misleading.
Tata Motors, India’s biggest automotive group, may have logged losses but they fail to reflect the robust operating performance at the maker of JLR, which took one-off write-downs as part of the strategy to take the big cat Jaguar all electric.
Restructuring costs at JLR were cumulatively around ₹15,000 crore, contributing to the ₹13,395 crore net loss for FY21. In February, JLR has already indicated it would incur £1.5 billion of exceptional charges due to the Reimagine strategy. JLR, the maker of Range Rover and Discovery, has witnessed improvement on cost metrics, cash generation and demand enhancement. Operating profit (EBIT) margin of JLR rose to 7.5% in Marc
Tata Motors Posts $1 Billion Loss As Jaguar Costs Hit Bottom Line ndtv.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ndtv.com Daily Mail and Mail on Sunday newspapers.
Jaguar Land Rover (JLR) owner Tata Motors is concerned by semiconductor shortages and Brexit-related supply disruptions as its luxury car sales recover, although the Indian automaker said on Friday these had not yet hit production. Tata Motors had three straight quarters of losses as the Covid-19 crisis dented sales, exacerbating uncertainties over Britain s European Union exit, weak demand and rising costs, but has bounced back to clock a profit in its third quarter. The issue is completely on the supply side rather than demand, PB Balaji, chief financial officer, said after Tata Motors posted a 67.2% rise in profit for the last quarter of 2020, with improved sales at JLR in key markets like China.