Tata Motors Q4 results 2021: Auto major reports loss of Rs 7,605 cr due to JLR; revenue up

India's auto major Tata Motors released its Q4 results 2021 where it reported a loss of Rs 7,605 cr owing to its asset write-downs in subsidiary Jaguar Land Rover (JLR). Even with surprise loss of Rs 7,605 cr, Tata Motors posted a 106 per cent year-on-year hike in revenues to Rs 20,046 crore in March quarter.

" CV business consistently posted sequential quarter on quarter growth on back of improved consumer sentiments, buoyancy in e-business, firming freight rates and higher infrastructure demand including ro construction and mining. We have successfully improved our operational and financial performance by reducing cost," said Guenter Butschek, CEO and MD of Tata Motors.

Tata Motors Q4 results

According to Bloomberg, Tata Motors was expecting a net profit of Rs 2,774.10 crore and revenue of Rs 87,517.8 crore for fourth quarter. However, its luxury subsidiary Jaguar Land Rover incurred cash write-downs on assets worth Rs 9,606.1 crore along with restructuring costs of Rs 5,388.2 crore, in all causing a whopping loss of Rs 15,000 crore in Q4. JLR h posted a loss of Rs 9,894.2 crore in corresponding period last year.

On a stand-alone basis, Tata Motors has report a net profit of Rs 1,646 crore as against a loss of Rs 4,871 crore in year-ago period. Even with COVID-19 pandemic in place, company has flagged global supply-related challenges.

"While demand remains strong, supply situation over next few months is likely to be versely impacted. We expect Q1 FY22 to be relatively weak due to this as well as rising commodity inflation and expect to improve grually from second quarter,"  Tata Motors said in a stock exchange filing.

"Supply chain issues, in particular for semi-conductors, have become more difficult to mitigate and are w impacting production plans for Q1. company is working closely with affected suppliers to resolve issues and minimise effect on customers," Tata Motors said in a stock exchange filing," it ded. 

After release of Tata Motors Q4 results, Tata Motors shares price rallied 3.4 per cent to close at Rs 332 on National Stock Exchange (NSE) on Tuesday. Its operating profit or earnings before interest, tax, depreciation and amortisation (EBITDA) stand at Rs 12.7k crore.

On a comparison te, Maruti Suzuki India Ltd.’s net profit fell 10.7% year-on-year to Rs 1,166 crore in fourth quarter. fourth 4 Passenger Vehicle (PV) sales stood at 79,600, up 191.6 per cent.