BENGALURU — Jaguar Land Rover (JLR) proprietor Tata Motors reported a quarterly loss on Monday that was larger than anticipated and warned of rising inflationary prices.
Automakers worldwide have been roiled by chip shortages, provide chain disruptions, COVID-19 restrictions and rising uncooked materials costs after a short-lived restoration in direction of the top of 2020.
“Demand stays robust regardless of close to time period issues … the semiconductor provide scenario is enhancing step by step while inflation worries persist,” Tata Motors stated in an trade submitting.
The corporate expects chip shortages at JLR to proceed by 2022 as suppliers step by step ramp up manufacturing, and can also be partaking instantly with chip producers to safe provide longer-term provides for the Vary Rover maker, it stated.
Tata Motors’ consolidated internet loss got here in at 15.16 billion rupees ($203.23 million) for the quarter ended Dec. 31, in comparison with a revenue of 29.06 billion rupees a yr earlier, when an easing of pandemic-related restrictions led to a pick-up in gross sales.
Nonetheless, the restoration was short-lived as acute semiconductor shortages and provide chain disruptions delayed manufacturing, and Tata Motors slipped again to losses.
For the reported quarter, analysts had anticipated the Mumbai-based firm to report a lack of 3.30 billion rupees, in response to Refinitiv IBES knowledge.
Tata Motors’ earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) margin, a key measure of profitability, was 10.2% for the quarter, above estimates of 9.3%.
Whole income from operations for the quarter fell 4.5% to 722.29 billion rupees, beneath estimates of 775.93 billion rupees.
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