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Published: Wed, February 15, 2017
Business | By Megan Pierce

Tata Motors' consolidated Q3 net profit plunges

Tata Motors' consolidated Q3 net profit plunges

Tata Motors' reported 96% decline in its consolidated net profit to ₹112 crore for the third quarter ended December 31, as compared with ₹2,953 crore in the same period of past year, due to a decline in the sales of medium and heavy commercial vehicles and a squeeze in margins from the Jaguar and Land Rover business.

Revenue dropped 4% to Rs 68,541 crore from Rs 71,617 crore.

The company reported net profit of Rs 111.57 crore compared to net profit of Rs 2952.67 crore in the corresponding period of the previous year.
However, income was up by 2.30% from Rs 66,999.69 crore of preceding quarter.

"Loss before and after tax for the quarter ended December 31, 2016 was Rs 1,032 crores and Rs 1,046 crores, respectively, against Rs 139 crores and Rs 137 crores, respectively, for the corresponding quarter a year ago", the company said in a statement. "Medium and heavy commercial vehicle segment witnessed major pressure with a fall of 9% (Y-o-Y) and light commercial vehicle segment was overall flat. Exports grew by 34.6% (Y-o-Y)", the company said. In the December quarter, total retail sales at the unit rose 8.5% to 149,288 units, led by higher demand in China, North America and Europe. "Passenger vehicles segment grew by 25.4% on-year with auto segment growth of 31.1% on-year on the back of continued strong response to the Tiago", Tata Motors said, adding that exports grew by 34.6% on-year. Tata Motors ' loss after tax widened to Rs 1,046 crore in the third quarter of 2016-17, from Rs 137 crore a year ago.

Tata Motors shares declined as much 7% after the earnings announcement but recovered some ground to close 3.68% down at Rs486.80 on a day the BSE's benchmark Sensex edged down 0.04% to 28,339.31 points on Tuesday.

"Given this, JLR is in a more precarious position than its peers", IDFC Securities analyst Deepak Jain said in the report. The unit's operating profit margin narrowed to 9.3 percent from 14.4 percent a year earlier, according to the statement.

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