The Mumbai-based automaker posted a net loss of ₹3,486 crore in the three months ended December 31, compared with a net profit of ₹5,406 crore a year earlier. JLR accounted for nearly two-thirds of the consolidated revenue.
Revenue from operations declined 26% to ₹70,108 crore from ₹94,472 crore, reflecting lower volumes and production disruptions at JLR.
Earnings before interest and tax (EBIT) turned negative at ₹3,300 crore, down Rs11000 crore in the corresponding period last year.
The December quarter continued to be impacted by the cyber incident at JLR, which disrupted manufacturing and global vehicle distribution, after a similar impact in the preceding quarter. The cyberattack caused an estimated cash outflow of around £1.5 billion, with the impact on earnings at more than £300 million. JLR volumes were affected by an estimated 30,000 vehicles in the December quarter, said the company executives told reporters in a post earnings call.
Richard Molyneux, chief financial officer of JLR, said the business also faced weakness in key markets such as China and the US, rising customer acquisition costs, and intense competition. “While operations have now returned to normal, the cyber incident and softer global demand continued to weigh on performance in Q3,” he said, adding that JLR expects a significant improvement in the fiscal fourth quarter, with no exceptional items anticipated.
In contrast, Tata Motors’ domestic passenger vehicle business delivered a sequential recovery, aided by higher volumes and incentives, though this was insufficient to offset the drag from JLR.Shailesh Chandra, managing director and CEO at Tata Motors Passenger Vehicles, said demand conditions in India remain healthy. “Products like Punch continue to perform strongly, and Sierra is expected to reinvigorate demand as production ramps up,” he said.
Dhiman Gupta, chief financial officer, said commodity prices remain under pressure, impacting around 2% of revenue, but added that cost discipline and volume recovery should support margins. “Despite the near-term challenges, the company has maintained its full-year guidance,” he said.
Tata Motors expects domestic demand to remain resilient and JLR’s performance to recover as cyber-related disruptions fade, even as global market conditions remain uncertain.
Shares of Tata Motors closed 0.33% lower at Rs374.15 apiece on the BSE, almost in line with a 0.6% decline in the benchmark Sensex. The earnings were reported after market hours.
