India's Tata Motors reports $1.3-billion loss as coronavirus bites
TATA MOTORS. The company is badly hit by the coronavirus pandemic. Photo from Tata Motors website
MUMBAI, India – India's Tata Motors on Monday, June 15, reported a loss of $1.3 billion for the first 3 months of this year as sales in its key markets of China and Europe were hit by the coronavirus pandemic.
The Mumbai-headquartered firm had just returned to the black in the previous quarter amid Chinese demand for its British luxury brands Jaguar and Land Rover.
The 98.94 billion rupees ($1.3 billion) net loss for the January-March quarter followed a net profit of 11.17 billion rupees for the same period last year.
"The auto industry faced strong headwinds in FY20 amidst a slowing economy due to multiple factors...all leading to weak consumer sentiments and subdued demand across segments," Tata Motors chief executive Guenter Butschek said in a statement.
"Disruption in the supply chain induced by the pandemic and the nationwide lockdown in mid-March 2020 added to the problems."
The company forecast a weak April-June – the 1st quarter of the 2021 financial year – which coincided with widespread virus lockdowns across its Europe, United Kingdom, and Chinese markets.
But it expects a gradual recovery of sales and improved cash flows for rest of the financial year.
Shares of Tata Motors closed almost 5% lower on the Bombay Stock Exchange Sensex Index ahead of the earnings result. – Rappler.com
