Tata Motors has reported a consolidated net loss of Rs 28,826.23 crore during the financial year 2018-19. The Indian auto major had posted a consolidated net profit of Rs 8,988.91 in the financial year 2017-18.
The total revenue from operation increased to Rs 3.01 lakh crore during the financial year 2018-19, as compared to Rs 2.92 lakh crore during the previous fiscal, Tata Motors said in a filing to the Bombay Stock Exchange.
During FY19, Tata Motors closed manufacturing operations in Thailand and the relevant restructuring costs were factored into the financial results. The company made provisions to the tune of Rs 381.01 crore under costs of closure of operation of a subsidiary during the fiscal year 2018-19.
"On July 31, 2018, the Company decided to cease its current manufacturing operations of Tata Motors Thailand Ltd. Accordingly, the relevant restructuring costs have been accounted in the year ended March 31, 2019," the company said in its filing to the Bombay Stock Exchange.
Tata Motors had also made provisions for impairment in Jaguar Land Rover worth Rs 27,837.91 crore during the December quarter of the FY19. The company assessed the recoverable amount of the Jaguar Land Rover business in light of changing market conditions, especially in China, technology disruptions and rising cost of debt.
"This has resulted in an impairment charge of 3,105 million pounds (Rs 27,837.91 crore) being recognised as exceptional charge for the quarter ended December 31, 2018. The Company continues to assess and endeavours to take appropriate mitigating actions on the potential impacts of changes, if any in tax and treaty arrangements globally, including Brexit," Tata Motors said in its statement.
Contrary to the annual performance, Tata Motors finally returned to profitability during the March quarter. The company posted consolidated net profit of Rs 1,117.48 crore during the March quarter of FY19 after reporting losses to the tune of Rs 26,992.54 crore during the December quarter. The company reported revenue of Rs 86,422.02 crore during Q4 FY19, declining from the Rs 89,9928.97 crore reported during the year-ago period.
"Our domestic business delivered a resilient performance in the face of challenging market conditions. We have continued to step up our pace of innovation, improved our market shares as well as our profitability. The 'Turnaround 2.0' strategy is delivering well, and I am confident that the business is getting the building blocks in place for long term success," said Tata Motors Chairman N Chandrasekaran.
"In JLR, we continue to face challenges in China which we are addressing on priority. To weather the volatile external scenario, we are taking decisive steps to step up competitiveness, reduce breakeven and improve cash flows whilst continuing to invest in exciting products and leading-edge technologies. With these structural interventions, I see Tata Motors Group building the right business model to deliver Competitive, Consistent and Cash Accretive Growth over the medium to long term," he further added.
Tata Motors shares on Monday ended 7.53 per cent up at Rs 190 apiece on the BSE.