Tata Motors lowers profit margin guidance for current fiscal year, after it posted its greatest quarterly loss on Thursday, harmed by an impairment charge for its British luxury car business Jaguar Land Rover (JLR).
Inconveniences at the Jaguar Land Rover (JLR) unit, which has been hit hard by U.S.- China exchange pressures, low interest for diesel cars in Europe and Brexit stresses, had tipped Tata Motors into its first loss in three years in the quarter finished June 2018.
While Tata Motors has reported plans to pivot JLR, the slide in the unit’s deals has proceeded for the time being with retail deals in China falling almost 50 percent amid the quarter finishing Dec. 31. PB Balaji, Chief Financial Officer told reporters on a conference call, “We are now taking clear and decisive actions in JLR to step up its costs competitiveness, reduce and improve cash flows and make the business fit for the future.”
The carmaker has found a way to address the slide in deals in China by changing its system to concentrate on benefits of merchants rather than deals and boosting retail deals over discount, Balaji said.
Tata Motors’ loss came at Rs. 26,993 crore ($3.78 billion) for the three months finished Dec. 31, contrasted and a benefit of Rs. 1,199 crore in the year-prior period. Revenue rose 5.8 percent to Rs. 76,265 crore.
“We see a gradual improvement in China going forward. We are happy to see our numbers stabilise now in terms of off take,” Balaji added.