HOME > BUSINESS > AUTO > Tata Motors net profit falls steeply due to Brexit impact

Tata Motors net profit falls steeply due to Brexit impact

TATAMOTORSTIAGOTata Motors said consolidated profit before tax and exceptional items for the April-June quarter fell to ₹2,066 crores from ₹6,340 crores last year due to the adverse foreign exchange impact.

The value of the British Pound fell drastically during the quarter due to the exit of the UK from the European Union. This had a foreign exchange impact of ₹2,296 crores on Tata Motors’ profit.

This also resulted in adverse commodity derivatives impact of ₹167 crores mainly in the Jaguar Land Rover business. “There was also lower local market incentive in the Jaguar Land Rover business as compared to the corresponding quarter last year and higher depreciation and amortization expenses as compared to the corresponding quarter last year,” Tata Motors said.

However, on the positive side, Jaguar Land Rover business saw strong sales in all the regions- UK, Europe, North America, China and other Overseas markets. The Indian market also saw continued volume growth in commercial vehicle segment.

As a result, consolidated revenues were up at ₹67,056 crores as against ₹61,510 crores for the corresponding quarter last year.

Exceptional items for the quarter includes further recoveries of ₹478 crores (£50 million) on account of the Tianjin incident which happened during the year ended March 31, 2016.

After the exceptional items, the Consolidated Profit before tax for the quarter was ₹2,551 crores, against ₹6,974 crores for the corresponding quarter last year.

JLR PERFORMANCE

Jaguar Land Rover wholesales and retails (both excluding China JV) for the quarter were 120,776 units and 118,704 units respectively.

China JV wholesales and retails for the quarter were 13,558 units and 14,059 units. Overall Retail sales were up in all regions reflecting strong sales of the Discovery Sport, XE and the new F-PACE – North America up 17%, UK up 18%, China up 19%, Europe up 16% and Overseas markets up 6%.

Revenues for the quarter ended June 30, 2016 were £5,461 million, compared to £5,002 million for the corresponding quarter last year. Operating profit (EBITDA) for the quarter was £672 million (margin at 12.3%), compared to £821 million for the corresponding quarter last year.

“The operating performance in the quarter reflects the overall higher wholesales, offset by adverse FX impact of £207 million including revaluation of £84 million, mainly EUR payables resulting from depreciation in the Pound following the BREXIT vote. EBITDA margin excluding the FX revaluation was around 14%. Further, the operating profit for the quarter was also impacted by lower local market incentive as compared to the corresponding quarter of the last year,” the company said.

Exceptional income during the quarter includes further recoveries of £50 million pertaining to Tianjin Port incident which happened during the year ended March 31, 2016.
Profit before tax was £399 million for the quarter ended June 30, 2016 compared to £638 million in the corresponding quarter last year due to lower operating profit as explained above, higher depreciation and amortization partly offset by higher China JV profitability. Share of China JV profit in Q1 FY 17 was £45 million.

Profit after Tax was £304 million for the quarter ended June 30, 2016 compared to Profit after tax of £492 million in the corresponding quarter last year.

INDIAN OPERATIONS

During the quarter, all the segments of the Company witnessed growth – M&HCV grew by 7.8% Y-o-Y, LCV segment grew by 11.6% Y-o-Y, Passenger vehicles segment grew by 6.3 % Y-o-Y with Car segment growth of 15.1 % Y-o-Y on the back of strong response to the recently launched Tiago.

The strong growth in all the segments along with ongoing cost reduction and other margin improvement initiatives, led to the improvement of 60 bps Y-o-Y in the EBITDA margin of the Standalone business (including Joint Operations) and 100 bps Y-o-Y in the EBITDA margin of the Standalone business.

The sales (including exports) of commercial and passenger vehicles for the quarter ended June 30, 2016, stood at 126,839 units, representing a growth of 8.0%, as compared to the corresponding quarter last year. The revenues of the Standalone business (including Joint Operations) for the quarter ended June 30, 2016 stood at ₹11,465 crores, as compared to ₹10,400 crores for the corresponding quarter last year. Operating profit (EBITDA) of the Standalone business (including Joint Operations) for the quarter stood at ₹690 crores with EBITDA margin at 6.6% (margin calculated on revenue net of excise duty). Other Income for the quarter included dividend from subsidiaries of ₹568 crores (dividend from subsidiaries of ₹481 crores in the corresponding quarter last year).

Profit before and after tax for the quarter ended June 30, 2016 for the Standalone business (including Joint Operations) was ₹38 crores and ₹26 crores, respectively, against Profit before and after tax of ₹332 crores and ₹290 crores, respectively, for the corresponding quarter last year.

The revenues of the Standalone business for the quarter ended June 30, 2016 stood at ₹11,276 crores, as compared to ₹10,272 crores for the corresponding quarter last year. Operating profit (EBITDA) of the Standalone business for the quarter stood at ₹588 crores with operating margin at 5.7% (margin calculated on revenue net of excise duty). Profit before and after tax for the quarter ended June 30, 2016 for the Standalone business was ₹17 crores and ₹15 crores, respectively, against Profit before and after tax of ₹212 crores and ₹203 crores, respectively, for the corresponding quarter last year. Profit before tax in the corresponding quarter last year included additional Other Income (sale of investments) of ₹324 crores.

Follow ULTRA.news
TVS Motor reports strong auto sales for July, Tata modest TVS Motor Company reported strong auto sales numbers for July, while Tata Motors had a more modest growth in the same month.TiagoTVS domestic scooter sales grew by 35.8% to 92,378 in July 2017.Motorcycles grew by 15.1% 109,427 in July 2017.However, moped sales ...
Tata Group wholesales down 2% in June, passenger up 1% The Tata Motors Group reported a 2% decline in global wholesales in June 2017.Total global wholesales for the month was at 90,966.The decline came from the commercial vehicle segment.Sales of commercial vehicles, including from Tata Motors and Tata Daewoo fell 8% ye...
Tata Motors domestic car sales up 27% in May, CV sales down 13% Tata Motors said it saw a 4% decline in its total passenger and commercial vehicle sales volumes in May 2017.Total number of vehicles sold (including exports) in the month was 38,361.The company’s domestic sales fell 3% to 34,461 nos.However, sales of domestic passeng...
Tata Motors global wholesale down 4% in April; cars up The Tata Motors Group global wholesales in April 2017, including Jaguar Land Rover, were at 73,691 nos., lower by 4%, over April 2016, the automaker said.Within this, commercial vehicle wholesales including Tata Daewoo were at 18,844, lower by 36%, over April 2016.Global...
Fitch Ratings upgrades Tata Motors on improving business performance JLR contributes most of the company's profitsFitch Ratings has upgraded its rating on Tata Motors by one notch, pointing to the automaker's improving business performance."The upgrade reflects the sustained improvement in TML's Indian automotive business over the last tw...
Reliance Jio to start trial services for fiber soon across India Reliance Jio, the biggest carrier of wireless data in the world, said it will expand beta trials of its fiber-to-the-home services in the 'next few months' across India.It has already started these trials in "a few locations", which would be expanded city by city. According t...
WATCH LIVE – Moving towards a less visa-dependent model : TCS New TCS CEO Rajesh GopinathanTata Consultancy Services has reported Q4 revenue of Rs 29,642 cr, a decline of 0.3%, and said his company will wait and see about new US visa regulations that are scheduled to come out today.NEW VISA RULESOn new visa regulations expected...
Jaguar Land Rover reports strong February 2017 sales Tata Motors reported its best ever sales performance for its UK unit for the month of February in 2017, with total retail sales up 9.3% on year for the month.Jaguar Land Rover, one of the world's top manufacturers of luxury vehicles, sold of 40,978 vehicles in the month, th...
Idea Cellular posts first-ever loss due to Reliance Jio impact Idea Cellular reported a loss of Rs 479 cr for the October-December quarter, hit by Reliance Jio's free offerings, the first loss in last 40 quarters since its IPO in 2007."The Indian mobile industry witnessed an unprecedented disruption in the quarter of Octoberto December ...
Spicejet turnaround continues, Q2 Profit doubles SpiceJet reported a doubling of its net profit to Rs 58.9 Crore for the July-September period as against Rs 29 crore for the same quarter last year.Operating revenue for the quarter stood at Rs.1,400 crores, a growth of 35%.Capacity deployed registered a growth of 38% o...
Jaguar Land Rover sales up 11% in October Tata Motors' subsidiary Jaguar Land Rover reported its best-ever October retail sales of 46,325 vehicles, up 11% compared to October 2015."The month’s performance has been driven by strong sales of the Land Rover Discovery Sport, Range Rover Evoque, Jaguar XF and the introduc...
Tata Motors’ JLR credit rating upgraded by Moody’s Tata Motors said Moody´s Investors Service has upgraded the credit rating of its unit Jaguar Land Rover Automotive Plc. by one notch.The company´s overall family corporate rating has been moved from Ba2 to Ba1. Outlook remains positive.The Jaguar Lannd Rover is Tata Motor...
Jaguar launches second generation Jaguar XF sedan in India at Rs 49.5 lakhs Jaguar Land Rover India launched the new Jaguar XF sedan in five variants starting from ₹ 49.50 lakh (ex-Delhi) in Mumbai.The new Jaguar XF is powered by the new Ingenium 2.0 l 4-cylinder turbocharged diesel engine that delivers a power output of 132 kWand is upto 20 kg l...
Tata Motors global wholesale up 16% in August Tata Motors said its global wholesales rose 16% in August to 86,288 compared to August last year. Wholesales of all passenger vehicles rose by 25% to 56,104.Land Rover wholesales for the month were at 29,222 vehicles. Jaguar wholesales for the month were 13,038 vehicles....
SpiceJet profit doubles on revenue growth SpiceJet doubled its net profit to Rs. 149 Crore for Q1 FY17 as against Rs. 73 crore for the same quarter last year.Capacity deployed registered a growth of 37% over the same quarter last year and operating revenue was Rs. 1,522 crores, a growth of 37%.The profit increase...
Tata Motors sees brisk growth in auto sales for April Tata Motors saw sales growth of 9.9% in April 2016 at 39,763 vehicles compared to total commercial and passenger vehicles sales of 36,190 units in April 2015.The company’s domestic sales of Tata commercial and passenger vehicles for April 2016 were 35,978 nos, a growth o...
Tata Motors joins RE100 renewable energy group Tata Motors Limited, India’s largest automobile manufacturer, has become the second Indian company to join RE100 – a global initiative of the world’s most influential companies committed to 100% renewable power.The company, which manufactures a range of commercial and passeng...
TVS Motor reports 11% growth in revenue despite Chennai floods TVS Motor Company has reported a revenue growth of 11% for the quarter ended December 2015. Total revenue grew from Rs 2,639 Crores in the quarter ended December 2014 to Rs. 2,940 Crores this year."On account of the unseasonal heavy rains and floods, the Chennai city an...
Dabur India Q3 sales, net profit up Dabur India Ltd reported a 2.4% growth in Consolidated Net Sales at Rs 2,122.4 Crore for the third quarter despite what it called a challenging business environment and continued softer consumption trend across the industry.The Company ended the third quarter of 2015-16 with ...
Tata Motors launches ACE Mega Pick-up Truck Tata Motors today announced the launch of a new smart pick-up – Tata ACE Mega."The ACE Mega, with superior performance, enhanced looks, strong cabin with rated payload of 1Tonne, will offer the best-in-class fuel efficiency and lowest cost of ownership. It is an innovativ...
Insurer IDBI Federal posts 84% premium growth for Q1 IDBI Federal Life Insurance, a joint-venture of IDBI Bank, India’s premier development and commercial bank, Federal Bank, one of India’s leading private sector banks and Ageas, a multinational insurance giant based out of Europe, has reported a growth of 84% in Total Premium at t...
RCom’s lack of data investments starts hurting growth Reliance Communications Ltd reported disappointing results for the June quarter on a steep decline in voice usage, but the company's voice pricing is now more or less at parity with that of Idea Cellular.However, in the absence of data growth, the company was not able to repo...
UFO Moviez reports 23% jump in Q1 revenue UFO Moviez India Limited, India’s largest digital cinema distribution network and in-cinema advertising platform in terms of number of screens, said its Q1 revenue rose by 23.3% to Rs.1,306 million in Q1FY16.PBT for the quarter stood at ₹183 million, up 43.8% compared to Rs.1...
SCI Q1 profit rises three times The shipping corporation of India(SCI) one of the largest Indian shipping Company, declared its financial results for Q1 ending 30th June 2015 noted a net profit of Rs 163.54 crores as compared to a net profit of 49 crore registered in Q1 ended 30th June 2014.The company had ...
IDBI Bank Q1 PAT rises to Rs 135 cr from Rs 106 Crore IDBI Bank reported a net profit of Rs 135 Crore for the quarter ended June 30, 2015 and Rs 873 Crore for year ended March 31, 2015 as against Rs 106 Crore for the quarter ended June 30, 2014 registering a growth of 27%.Total business (deposits and advances) as of June 30, 201...