Tata Motors net loss at Rs 307 cr in Sep quarter; says expect gradual recovery of demand

Even though there was not too much cheer to report over its performance over the last quarter, Tata Motors has said that it is looking to move positively forward. Auto major Tata Motors on Tuesday reported a consolidated net loss of Rs 307.26 crore for the second quarter ended September 30. It had reported a net loss of Rs 187.7 crore during the July-September period previous fiscal. Tata Motors, in a statement said, "Despite concerns around the risk of second wave of infection in many countries and other geopolitical risks, we expect a gradual recovery of demand and supply in the coming months".

The company's total revenue from operations declined to Rs 53,530 crore in the second quarter as against Rs 65,431.95 crore during the same period last fiscal, Tata Motors said in a regulatory filing.

On a standalone basis, the company posted a net loss of Rs 1,212.45 crore for the September quarter. It had registered a net loss of Rs 1,281.97 crore in the same period last fiscal.

The total revenue from operations stood at Rs 9,668.10 crore as compared to Rs 10,000.48 crore in the September quarter of 2019-20.

Jaguar Land Rover reported revenue of 4.4 billion pound, up 52.2 per cent from April-June quarter this fiscal, although it is 28.5 per cent lower compared to the same period a year ago.

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The luxury brand generated a 65 million pound profit before tax in the second quarter, up from a loss of 413 million pound in the prior quarter, but lower than the PBT of 156 million pound a year ago.

In this context, the company is committed to achieving near-zero net automotive debt in the coming years by focusing on better front-end activations of our exciting product range and executing cost and cash savings with rigour, it added.

PB Balaji, Group CFO, Tata Motors - Highlights from concall

* Saw sequential improvement 

* Quite happy with the results in the current environment 

* JLR continued a strong run financially both globally and nationally 

* Liquidity is strong, debt maturities are spread out

* No concerns at retail level as far JLR is concerned 

* JLR liquidity is strong at $5 billion 

* CV delivered sequential improvement 

* Expect CV demand to rise in the coming few months

* Strong hatchback presence in PV

* Nexon EV delivering good growth

* We see demand gradually improving 

* JLR demand improving everywhere in all geographies 

* Continue to see momentum in PVs 

* Expect second half of the year to be strong 

* Expect to improve performance in the qtr

* Operationally well prepared for Brexit 

* On wait and watch mode as far as taxes are concerned 

* Hard or soft Brexit will play a crucial roll

* Open borders are good for everybody

* Expect clarity what happens to Brexit 

* Will take inventory corrections as we move forward

* We are in conversation with various OEMs for partner in the domestic passenger vehicle segment

* It’s good for us to manage with the partner in the long run

* Absolute GNPA is improving

* Seeing strong recovery post moratorium

* Many players are coming back in CV Financing space

* Cautiously optimistic that worst is over for CVs as far as financing is concerned

* Rural demand is bouncing back for CVs

* Govt's projects have helped to revive M&H Cvs

* Really concerned about the bus segment

* October has been a blow out month for vehicle demand

* Saw a good demand, wait till November for details of festive season

* We are at our highest ever order book rate, financing, production level etc

* LCVs and ICVs have really helped the CV demand to bounce back

* Post lockdown, getting enquiries for M&HCVs

* Dont see green shoots in bus segment

* Eagerly awaiting for cargo revival, enquiries have started coming in

* No issues in financing for PVs

* Regular inventory build up is happening

* One will see really fresh cars on the road

* Inventory in the system is not an issue for CVs or PVs

* Orders at all time high

* Biggest driver for us is Covid cases coming down and debt rates coming down

* India is flush with liquidity

* Improvement in GDP will lead to better demand for the industry

On JLR

* Back to growth in China, see things improving 

* US and Canada are coming through 

* Concerns around second wave of growth, so far it's not there on the demand pattern 

* Dont expect significant lockdowns