Bengaluru: India’s Tata Motors Ltd reported its first quarterly loss in nearly three years on Tuesday, as UK business Jaguar Land Rover (JLR) sold fewer of its luxury cars to dealerships in China, while raw material costs rose. The automaker said first-quarter net loss was ₹ 1,902 crore, compared with a profit of ₹ 3,182 crore a year earlier that included a ₹ 3,609 crore gain from changes to the way JLR’s pension payments are calculated.
Dealers in China delayed purchases to benefit from an import duty cut that came into effect after the end of the reporting quarter, the automaker said, adding that planned dealer stock reduction in other markets also weighed on its business.
That resulted in a 6.7% drop in quarterly revenue for JLR, the company added.
Total expenses during April-June rose about 17% to ₹ 69,890 crore.
JLR had said in April it would cut around 1,000 jobs and production at two of its English factories due to a fall in sales caused by uncertainty around Brexit and confusion over diesel policy.
On Tuesday, shares of Tata Motors Ltd fell 1.18%, or ₹ 3.15, to ₹ 264.15 on the BSE while the benchmark Sensex once again rose to a record high of 37,606.58 points, up 0.30%—or 112.18 points—from previous close.