However, the company reported a 107.6 per cent year-on-year rise in consolidated revenues to Rs 66,406 crore, which was sharply higher than analysts’ estimates.
The strong topline performance of the company was largely aided by the benefit of a low base in the year-ago quarter, which was marred by lockdowns in several global markets and national lockdown in India to contain the spread of the Covid-19 pandemic.
The company’s cash cow Jaguar Land Rover reported a 73.7 per cent on-year rise in revenues to 4.96 billion pound sterling as re-opening of most global markets boosted sales. However, the performance was much lower than what the company expected as operations were affected by shortage of semiconductors.
JLR incurred a cash outflow of close to 1 billion pound sterling in the reported quarter as was guided by the management earlier this month due to supply chain issues caused by the semiconductor shortage.
“Though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control and ensure that Jaguar Land Rover is well-placed to respond to any further market developments,” said chief executive officer of JLR Thierry Bollore.
Despite the challenges, JLR managed to report a 540 basis points on-year expansion in its EBITDA margin to 9 per cent in the reported quarter. Yet, the company reported a pre-tax loss of 110 million pound sterling in the quarter.
JLR expects the going to get worse in the September quarter as it sees wholesale volumes plummeting up to 50 per cent in the second quarter owing to semiconductor shortages.
The Indian operations of the company saw a strong quarter despite the limited impact of the second wave of Covid-19 infections. Sales in the quarter rose 343 per cent on-year to Rs 11,904 crore largely due to a low base.
However, the Indian operations narrowed their pre-tax loss before exceptional items to Rs 1,289 crore from Rs 2,141 crore in the year-ago quarter. The India business’ EBITDA margin expanded 3,110 basis points on-year to 1.8 per cent.
“The business scenario continues to remain fluid. Demand situation is likely to improve further despite pandemic uncertainty impacting the short term. However, there are significant challenges on the supply side including semiconductor issues and runaway commodity inflation,” Tata Motors said.
Shares of Tata Motors ended 1 per cent lower at Rs 292.75 on the National Stock Exchange.
