InvestorQ : Why did Tata Motors again report a loss in the Jun-21 quarter?
Dilmini Mercia made post

Why did Tata Motors again report a loss in the Jun-21 quarter?

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Dawn Cherian answered.
5 months ago
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For the Jun-21 quarter, Tata Motors reported a net loss of Rs.4,451 crore, which was still narrower compared to the loss of Rs.8,444 crore reported in Jun-20 quarter. It was also lower than the net loss in the sequential Mar-21 quarter. The reason was a severe shortage of microchips which impacted volumes at its largest JLR unit and this had a negative impact on earnings. Commodity inflation played a part as input costs were up 4X yoy.

Apart from the above factors, higher product development costs and exceptional net tax impact of Rs.1,742 crore also pressured the quarterly numbers. The markets had estimated just half these losses, but that cannot be a benchmark. EBITDA margins were at 9%, and the good news is the sharp growth of nearly 540 bps over the previous quarter. Even consolidated EBITDA margins are higher. JLR sales were up 68.1%.

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