Jaguar Land Rover parent posts wider loss on COVID-19 hit

Credit: REUTERS/Andrew Boyers

Adds JLR outlook, comment on demand recovery

BENGALURU, Oct 27 (Reuters) - India's Tata Motors Ltd TAMO.NS posted a wider loss for the September quarter on Tuesday as the COVID-19 pandemic sapped demand in several of its key markets.

The global health crisis has hammered sales for automakers worldwide and compounded problems for Tata Motors, which was trying to improve Jaguar Land Rover (JLR) sales amid weak demand and uncertainty related to Brexit.

Tata Motors reported a consolidated net loss of 3.14 billion rupees ($42.47 million) for the second quarter ended Sept. 30, compared with a loss of 2.17 billion rupees a year earlier.

Retail unit sales at luxury car unit JLR, which rakes in most of the company's revenue, was down nearly 12% for the reported quarter. Tata Motors, however, said it expects JLR sales to gradually improve.

"Despite concerns around the risk of a second wave of (COVID-19) infections... we expect a gradual recovery of demand and supply in the coming months," the carmaker said in an exchange filing.

Total revenue from operations fell 18.2% to 535.3 billion rupees.

Tata Motors said it was committed to achieving near-zero net automotive debt in the coming years.

Shares of Tata Motors ended 1.46% higher on Tuesday while the broader Mumbai market .NSEI settled 1.03% higher.

($1 = 73.9430 Indian rupees)

(Reporting by Chandini Monnappa in Bengaluru; Editing by Ramakrishnan M.)

((; +918061822697;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.