MUMBAI: Auto major Tata Motors on Wednesday reported a 50 per cent decline in its consolidated net profit at Rs 2,176 crore for the quarter ended March, 2018 as against a profit of Rs 4,336 crore a year ago.
The dip in profit was despite the company’s consolidated income from operations grew to about Rs 91,279 crore compared to Rs 78,746 crore last year. According to the company, the fourth quarter net profit fell on account of higher expenses and a one-time impairment charge for certain product development programmes.
“In the near-term, the challenges of market, technology and geopolitical uncertainties are likely to persist,” said N Chandrasekaran, Chairman, Tata Motors.The company reported a one-time loss of Rs 1,641 crore on account of undisclosed programmes. Besides, the company also invested heavily — Rs 2,113 crore — towards new vehicles and technology during the quarter under review.
“We invested for growth, launched exciting new products and established landmark partnerships,” he added.
Jaguar Land Rover, which contributes about 90 per cent of the company’s revenue, is facing tough times in the UK, which the company is attempting to make up from the retail sales in markets like China.
For the full fiscal FY18, consolidated net profit rose by 18 per cent to Rs 9,091 crore from Rs 7,666 crore in FY17.
Standalone revenue from operations for the quarter stood at Rs 19,779 crore as against Rs 15,080 crore the previous year.
The company reported a loss of Rs 500 crore in its standalone business, which was due to exceptional investments and impairment of assets.
But the company hopes for a turnaround in its domestic business, which according to Chandrasekaran gained market share both in commercial and passenger vehicles.