Tata Motors, which announced its consolidated financial results for the quarter and nine months ended December 31, 2016, has seen its Q3 profit (PAT) fall sharply by 96.20 percent to Rs 112 crore, as against Rs 2,953 crore for Q3 FY2016.
The fall in numbers is a result of lower offtake in domestic CV operations and lower profit from mainstay Jaguar Land Rover. The company has reported consolidated revenues (net of excise) of Rs 67,484 crore as against Rs 70,567 crore for Q3 FY2016. Consolidated profit before tax for Q3 FY2017 is Rs 599 crore, against Rs 3,414 crore for Q3 FY2016.
Tata Motors has said that during Q3 FY2017 (October-December 2016) its commercial vehicle operations “witnessed demand shrinkage due to the demonetisation – the M&HCV segment witnessed major pressure with a fall of 9.0 percent YoY and the LCV segment was overall flat. The passenger vehicles segment grew by 25.4 percent YoY, with the car segment growth of 31.1 percent YoY on the back of continued strong response to the Tiago. Exports grew by 34.6 percent YoY.”
Jaguar Land Rover's Q3 profit down 62 percent
Jaguar Land Rover reported revenues of £6,537 million (up 13.1 percent YoY), compared to £5,781 million for Q3 FY2016. Operating profit (EBITDA) for the quarter was £611 million (9.3 percent margin), compared to £834 million (14.4 percent margin) for Q3 FY2016.
The company says the operating performance reflects lower wholesale volumes and less favourable product mix partially, offset by favourable market mix (including the runout of the Discovery model); unfavourable variable marketing expense, including the extended 2016 model year runout expenses in the US; higher new-model launch costs; and biennial pay negotiation settlement.
Profit before tax (PBT) was £255 million for Q3 FY2017 (after an exceptional item of £85 million of further recoveries related to the Tianjin losses) compared to £499 million in Q3 FY2016. Profit after Tax (PAT) was £167 million for Q3 FY2017 compared to £440 million in Q3 FY2016, down 62 percent YoY.