InvestorQ : Why did Tata Motors report such a huge loss of Rs.7,605 crore in Mar-21 quarter?
Debbie Mascarenhas made post

Why did Tata Motors report such a huge loss of Rs.7,605 crore in Mar-21 quarter?

Answer
image
Arti Chavan answered.
4 weeks ago
Follow

That loss was largely due to an exceptional loss booked because Tata Motors actually ended with very healthy operating profits in Mar-21 quarter. Tata Motors reported a net loss of Rs.7,605 crore for the Mar-21 quarter but this was largely due to a massive Rs.14,994 crore write-off that the company took. This write-off was on account of Jaguar Land Rover, as part of its Reimagine Plan and this is a one-time exceptional cost.

Despite this huge write-off taken by TAMO in Mar-21 quarter, its net loss narrowed compared to the net loss of Rs.9,894 crore in the Mar-20 quarter. The real growth was visible in the top line with revenues for the quarter up 42% at Rs.88,628 crore. This growth was due to base effect. TAMO showed good traction on an EBITDA level. This was true of the global JLR business as well as domestic passenger car and CV business.

5 Views