Home-grown automaker Tata Motors on Tuesday reported a loss of INR 7605.04 crore in Q4FY21 despite rising demand for its cars and utility vehicles. The owner of luxury car brands Jaguar, Land Rover, recorded INR 9,894 crore loss in the same quarter year ago, the company said in a statement to a regulatory filing.
In terms of revenue from operations, during the quarter ended on March 31, 2021, the company recorded INR 88,628 crore, up by 42% compared to INR 62,492 crore in the same quarter last year.
Tata Motors operations continued its strong sequential recovery in the quarter, with commercial vehicle revenues recovering to pre-pandemic levels and passenger vehicle revenues reaching multi-year highs on the back of the new product range.
Guenter Butschek, CEO & MD, Tata Motors, said, “The auto industry was deeply impacted by COVID-19 in FY21 but witnessed a steady growth in vehicle demand as the nationwide lockdown eased, and pent-up demand came to fore supported by a steady recovery of the economy. At Tata Motors, we scaled up capacity by prudently addressing several supply chain bottlenecks while maintaining the health, safety and wellbeing of our employees as well as the supporting ecosystem at the forefront.”
For passenger vehicle strong performance, Butshchek added, a clear shift towards personal mobility and the rich preference for our cars and SUVs which led to the highest ever annual sales in last eight years and growing its market share to 8.2%.
“The CV business consistently posted sequential quarter on quarter growth on the back of improved consumer sentiments, buoyancy in e-business, firming freight rates and higher infrastructure demand, including road construction and mining. We have successfully improved our operational and financial performance by reducing costs and generating cash flows,” he added.
Jaguar, Land Rover reflected a strong YoY recovery of retails in China and N America.
Outlook
While demand remains strong, the supply situation over the next few months is likely to be adversely impacted by disruptions from COVID-19 lockdowns in India and semiconductor shortages worldwide.
The company expects Q1 FY22 to be relatively weak due to this and rising commodity inflation and expect to improve gradually from the second quarter.