Indian multinational automotive manufacturing company, Tata Motors has suffered a loss of $1 billion in the first quarter of 2021.
The loss that the company suffered has been registered despite the company selling an increased number of cars.
Read on to find out how this happened.
Tata Motors Records $1 Billion Loss In The First Quarter Of 2021
Tata Motors has announced a loss of Rs. 7,600 crore ($1 billion) in the first quarter of the current year even though the performance of the company was strong. The losses have been incurred by the company Due to the restructuring costs that connect to the british luxury car brand Jaguar Land Rover (JLR).
As per reports Tata motors has reported a consolidated net loss of Rs.76 crores during the January to March period thereby narrowing its losses from Rs.9890 crore that was reported last year.
The revenues of Tata Motors have actually increased by 42 per cent; however, the exceptional costs that made up to about $2.13 billion (Rs 15,559 crore) impacted the profitability of the company. This entire amount is related to the restructuring of JLR.
P.B. Balaji, chief financial officer of Tata Motors said, “It was a strong and resilient all-round performance for us, despite the pandemic.” He was speaking in a post-earnings conference call.
Tata Motors Records Losses For Three Consecutive Quarters Last Year
Tata Motors has now reported losses for three consecutive quarters last year owing to the pandemic and a reduced demand in both domestic and international markets. When the restrictions were lifted, the revenues of the popular car maker reached the sky between October 2020 and March this year.
However, as the country has been put under a lockdown yet again as the second wave of COVID-19 virus continues to take many lives, multiple automobile manufacturers, including Tata Motors have shut their plants down temporarily.
However, the company’s CEO and managing director Guenter Butschek has stated, “We will continue to remain vigilant about the evolving Covid situation.”
The restructuring of the JLR, which has caused the loss of revenue to Tata Motors, is Britain’s largest car manufacturer.