Tata Motors, a vehicle maker, has an integrated net loss of Rs 28,724.20 crore in the entire financial year 2018-19, compared to Rs 9,000 crore in the previous financial year. The company's combined net profit fell 49 percent to Rs 1,108.66 crore in the fourth quarter ended March 31.
Due to the reduction of income mainly due to certain special provisions related to the business of the British entity Jaguar Land Rover, its profits have come down. Following this result, the price of shares of Tata Motors has seen a fall on Tuesday.
According to the news agency PTI, Tata Motors Chief Finance Officer PB Balaji told reporters, "In the fourth quarter, after the loss in the third quarter, we have again come in profit. Revival 2.0 has given us better results in terms of domestic business.
"In the financial year 2018-19, the company has a net loss of Rs 28,724.20 crore, compared to Rs 9,091.36 crore in the previous financial year," the company said in a statement. The total income of the company was Rs 3,04,903.71 crore in the financial year, which was earlier Rs 2,96,298.23 crore in the financial year 2017-18. On the basis of single-parent basis, the company's net profit stood at Rs 2,398.93 crore in 2018-19, compared to a net loss of Rs 946.92 crore in the previous fiscal.
"The company's consolidated net profit fell 49 percent to Rs 1,108.66 crore in the fourth quarter ended March 31," the statement said. In the same quarter of the previous financial year 2017-18, the company had earned an integrated net profit of Rs 2,175.16 crore. Total consolidated revenue of the company was Rs 87,285.64 crore in the reported quarter, which was Rs 91,643.44 crore in the fourth quarter of the year 2017-18. In this way, the company's income declined by 4.75 percent.
According to the company, during the quarter, JLR conducted a voluntary retirement program for which special provision of expenditure of Rs.1367.22 crores had to be made, while it mainly contributed to the loss of investment of Rs. 27,837.91 crores.
Tata Chand's Chairman N Chandrasekharan said, "Our domestic business is sustainable in the face of market challenges. We have accelerated the pace of innovation and have increased our market share and profits. Our Turnaround 2.0 strategy is working well and I am confident that our business is frozen in terms of long term success. In the case of JLR, we are getting a constant challenge in China, which is being handled by priority. "
Significantly, the condition of the auto sector is not good. Auto sales have seen the biggest decline of eight years in the country in April. Passenger vehicle sales in the country, which means passenger vehicle sales have declined 17 percent in April. This is the biggest fall since October 2011. Sales in October 2011 were down by 19.87 percent.
According to data released by the Society of Indian Automobile Manufacturers (SIAM), the sales of passenger vehicles in the domestic market fell 17.07 percent in April 2019 to 2,47,541 units.