Tata Motors PV Swings to Quarterly Loss of 5,531 Crore as Revenue Climbs 34%

what happened

Tata Motors Passenger Vehicles unexpectedly slipped into a loss in the second quarter, posting 5,531 crore against a profit of 76,170 crore a year earlier. That earlier profit was inflated by a one-time gain from spinning off the commercial vehicle business. Moody's reports that the loss is the company's steepest in about 22 quarters. Consolidated revenue rose 34% to 96,920 crore, slightly short of market estimates. Analysts polled by Bloomberg had expected a net profit of 1,811 crore.

The company also lowered its adjusted EBIT margin outlook for Jaguar Land Rover for the current fiscal year to 2-3%, down from roughly 4%. JLR is still recovering from last year's cyberattack, while restructuring and investment in next-generation models are weighing on earnings and cash flow. The domestic passenger vehicle business reported record quarterly revenue of 20,423 crore, but its EBIT margin stayed negative.

Shares of Tata Motors PV closed 3.4% lower at 287 on the BSE on Friday. The results were released after market hours.

why it matters

For markets, the key signal is the combination of one-off charges, weak JLR margins and a lower outlook. Investors will be watching how the company handles rising commodity costs and changes to its model mix.

market impact

Tata Motors PV shares: quarterly loss and weaker JLR margin outlook weigh on the stock

• ▼Tata Motors PV shares pressure down — quarterly loss and lower JLR margin guidance pressure the stock

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