Auto giant Tata Motors on Thursday said it has suffered a tremendous loss of ₹26,961 crores for the December quarter. It said that it took exceptional, one- time non- cash charge for impairment of asset of over 3.1 billion pounds.
The auto firm had posted a profit of Rs 1,214.60 crore in the year-ago period.
Consolidated revenue for the quarter under review rose 5 per cent YoY to Rs 77,001 crore.
In a filing to the BSE, the automaker said its performance was impacted by challenging market conditions particularly in China and inventory corrections.
The company added that it was taking decisive actions to make the business ‘Fit for Future’ by stepping up competitiveness, reducing costs and improving cash flows.
“We are announcing a non-cash exceptional charge to reduce the book value of our capitalised investments. This accounting adjustment is consistent with the other decisive actions that we must take as part of our ‘Charge’ and Accelerate transformation programmes to create an efficient and resilient business, enabling Jaguar Land Rover to counter the multiple economic, geopolitical, technological and regulatory headwinds presently impacting the automotive industry. We are taking the right decisions now to prepare the company for the new technologies and strong product offensive for the future,” the company said in a release.
The company noted that JLR in January announced its plans to achieve £2.5 billion of investment, working capital and profit improvements by March 2020, and for that suggested a reduction in its global workforce by 4,500 people. This is expected to result in a one-time exceptional redundancy cost of around £200 million, it said.
“The EBIT margin for the full financial year ended March 2019 is expected to be marginally negative which will result in a loss before tax for the year before exceptional items,” the company said on JLR business.