{"id":14274,"date":"2022-01-31T09:00:29","date_gmt":"2022-01-31T14:00:29","guid":{"rendered":"https:\/\/autosector.com\/?p=14274"},"modified":"2022-01-31T09:00:29","modified_gmt":"2022-01-31T14:00:29","slug":"tata-motors-jaguar-land-rover-quarterly-loss-2","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=14274","title":{"rendered":"Tata Motors posts quarterly loss and warns of inflationary costs"},"content":{"rendered":"

BENGALURU \u2014 Jaguar Land Rover<\/a> (JLR) owner Tata<\/a> Motors reported a quarterly loss on Monday that was bigger than expected and warned of rising inflationary costs.<\/p>\n

Automakers worldwide have been roiled by chip shortages<\/a>, supply chain disruptions, COVID-19 restrictions and rising raw material prices after a short-lived recovery towards the end of 2020.<\/p>\n

“Demand remains strong despite near term concerns … the semiconductor supply situation is improving gradually whilst inflation worries persist,” Tata Motors said in an exchange filing<\/a>.<\/p>\n

The company expects chip shortages at JLR to continue through 2022 as suppliers gradually ramp up production, and is also engaging directly with chip manufacturers to secure supply longer-term supplies for the Range Rover<\/a> maker, it said.<\/p>\n

Tata Motors’ consolidated net loss came in at 15.16 billion rupees ($203.23 million) for the quarter ended Dec. 31, compared to a profit of 29.06 billion rupees a year earlier, when an easing of pandemic-related restrictions led to a pick-up in sales.<\/p>\n

However, the recovery was short-lived as acute semiconductor shortages and supply chain disruptions delayed production, and Tata Motors slipped back to losses.<\/p>\n

For the reported quarter, analysts had expected the Mumbai-based company to report a loss of 3.30 billion rupees, according to Refinitiv IBES data.<\/p>\n

Tata Motors’ earnings before interest, taxes, depreciation<\/a>, and amortization (EBITDA) margin, a key measure of profitability, was 10.2% for the quarter, above estimates of 9.3%.<\/p>\n

Total revenue from operations for the quarter fell 4.5% to 722.29 billion rupees, below estimates of 775.93 billion rupees.<\/p>\n

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