Tata Motors missed street expectations as fourth quarter consolidated net profit plunged 56% year-on-year to Rs 1,717 crore, the company revealed on Tuesday.
The company said it had been hit by higher depreciation expenses and unfavourable revaluation of foreign currency debt at Jaguar Land Rover.
The company’s consolidated revenue in the January-March quarter rose 4% year-on-year to Rs 67,576 crore. Tata Motors’ standalone loss in the fourth quarter was Rs 1,164 crore, although revenue for the quarter rose 26% to Rs 10,784 crore. The company said it won’t pay dividend for 2014-15.
Quarterly net profit at Jaguar Land Rover declined to £302 million from £449 million pounds a year ago. Fourth quarter revenue at JLR rose 9% to £5.83 billion.
“Jaguar Land Rover has £2.5 billion foreign currency loans. Two-thirds of that is dollar-denominated, so there is notional mark-to-market change depending on how currency moves,” said Vijay Somaiya, vice-president and head, treasury and investor relations at Tata Motors.
JLR retail sales at 124,307 units also fell slightly in the quarter from 124,776 units a year ago, mainly due to sluggish demand in slowdown-hit China, which accounts for about 25% of its global sales. JLR CEO Ralph Speth said the company was cautiously optimistic on China,
Demand for medium and heavy commercial vehicles were seen rising, while domestic passenger vehicle sales rose 19%, Tata Motors said. Light commercial vehicles remain under pressure, according to Ravi Pisharody, executive director at Tata Motors’ commercial vehicles unit.