Operating revenue fell 4.5 percent to 722.3 billion from a year earlier.
Bombay:
Tata Motors, the owners of the Jaguar and Land Rover brands, today reported a fourth consecutive quarterly loss, weighed down by higher raw material prices and the global chip shortage.
Microchips are an important part of auto manufacturing, but automakers around the world are hampered by limited supplies due to semiconductor manufacturing restrictions during the pandemic.
The Mumbai-based company reported a net loss of Rs 15.2 billion ($203 million) in the three months to December 31, it said in a statement, compared with a net profit of rupees 29.1 billion a year earlier.
“The auto industry continued to witness rising demand in most segments, even as semiconductor supply remained limited, negatively impacting production,” said Girish Wagh, executive director of Tata Motors in a statement.
“The semiconductor supply situation is gradually improving as inflation concerns persist,” the company added.
Operating revenue declined 4.5 percent to 722.3 billion ($9.7 billion) from a year earlier.
Retail sales of Tata Motors’ UK subsidiary, Jaguar Land Rover, Britain’s largest automaker, were “constrained significantly by chip shortages and low inventories” and fell 37.6 percent year-on-year.
But the company’s Indian business saw sales rise 43.3 percent over the corresponding period, and sales rose across all vehicle segments.
The electric car division reported new quarterly sales of 5,592 cars.
Shares in Tata Motors closed 4.04 percent higher at the end of Monday’s trading in Mumbai ahead of the earnings announcement.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
