Tata Motors Posts Rs 27,000 Crore Quarterly Loss, Largest In India’s Corporate History

Tata Motors, the automotive arm of Tata Sons, posted a net loss of Rs 26,993 crore for the quarter ending in December 2018 (Q3 18), the biggest quarterly loss in Indian corporate history, reports Fortune India.

The record was previously held by the state-run oil and gas company Indian Oil Corporation Ltd. in 2012. The shares of Tata Motors Ltd. on National Stock Exchange (NSE) dropped by 29.4 per cent, their worst single-day performance since listing.

Tata’s current balance sheet deficit was primarily due to a one-time impairment charge of Rs 27,838 crore. In its regulatory filing on Thursday (8 January), the company said that its luxury car unit, Jaguar Land Rover (JLR) was significantly impacted by “challenging market conditions particularly in China and inventory corrections.”

However, Tata affirmed that it would continue to invest in “exciting products and leading edge technologies… Taking decisive actions to make the business fit for future by stepping up competitiveness, reducing costs and improving cash flows."

Revenues Up, Not By So Much

While consolidated revenues at the firm grew by five per cent to Rs 77,001 crore for the quarter ended December, on a standalone basis, revenues were up only by 1.5 per cent year-on-year at Rs 16,208 crore. Profit after tax stood at Rs 618 crore.

Also Read: Tata Motors Says Bye To Nano: No More Updates, Production Cycle To End In 2020