TaMo Q2 loss widens to Rs 307 crore

TNN

Mumbai: Losses at Tata Motors, the flagship of the Tata Group, widened to Rs 307 crore in Q2FY21 from Rs 188 crore a year ago. Revenue declined 18% to Rs 53,530 crore as the global health crisis sapped demand for new vehicles. The company expects a gradual recovery of demand in the coming months even as there are concerns about a second wave of infection in many countries.

Expenses fell 16% to Rs 54,983 crore as it kept a tight lid on costs. Employee benefit expenses declined 12% to Rs 6,409 crore due to government grants received by its UK subsidiary

Jaguar Land Rover

(JLR). The British unit, which accounted for 78% of Tata Motors’ revenue, received grants of Rs 534 crore (55 million pounds).

JLR

’s revenue fell 21% to Rs 41,768 crore while operating profit declined 77% to Rs 577 crore in Q2FY21.

Tata Motors’ automotive debt decreased to Rs 61,000 crore from Rs 68,000 crore in the September quarter of fiscal 2020. The company said it was committed to achieving a near-zero net automotive debt in the coming years by executing cash and cost savings with rigour. “We are squeezing the lemon dry in terms of cost savings,” said the company CFO P B Balaji.


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