Tata Motors Reports Loss Of 1,049 Crore Rupees In September Quarter

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JLR said the bulk of the slump in sales was due to the market conditions in China, where the recently begun trade war with the United States has created consumer uncertainty.

Jaguar Land Rover's loss narrowed to £101 million from £253 million, in line with the £100-million loss estimated. As part of the turnaround program, JLR wants to generate £2.5 billion (Rs 23564 crore) of total profit, cost, and cash flow improvements of over the next 18 months.

"To weather this volatile external scenario, we have launched a comprehensive turnaround plan to significantly improve our free cash flows and profitability".

Tata Motors has been one of the worst performing stocks in the sector with the share price crashing over 60% since the beginning of this fiscal.

UK-based luxury auto maker Jaguar Land Rover has reported a loss of 101 million pound for the quarter ended September 2018 on fall in revenue and weak operating income. The leadership team at JLR is in mission mode to achieve the deliverables under this plan.

This strong performance in the face of an intensely competitive market situation augurs well for the future, Chandrasekaran said.

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"With these concerted actions we remain committed to deliver an improved all-round performance from H2 FY 19", he added.

Revenue during the quarter degrew by 11 percent year-on-year to 5,635 million pound in Q2 as retail sales dropped 13.2 percent to 1.29 lakh units and wholesales fell 14.7 percent to 1.3 lakh units with challenging market conditions in China.

The results also reflect the damage inflicted on the United Kingdom vehicle market by the introduction of European emissions standards known as WLTP - creating a bottleneck in supply - which was blamed for a 20% fall in new auto sales in September.

"Together with our ongoing product offensive and calibrated investment plans, these efforts will lay the foundations for long-term, sustainable profit growth".

Reviewing the Q2 earning, N Chandrasekaran, chairman Tata Motors said, the domestic business continued to deliver a strong improvement in operational and financial performance by implementing the Turnaround 2.0 strategy effectively.

The company said free cash flow (automotive) in the quarter was negative Rs 4,357 crore reflecting lower operating profits at JLR and closing net automotive debt was Rs 41,151 crore reflecting the cumulative negative free cash flow primarily at JLR.

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