India’s largest automobile company registered consolidated net profit after tax of 1,756 cr in the third quarter-ended December 31, 2019 as against net loss of 26,961 cr during the year-ago period. Total rev-enue from operations stood at 71,676 cr as compared with 76,916 cr in the period under review. On a standalone basis, the auto major posted net loss of 1,040 cr in the third quarter of FY2019-20 as against a profit of 618 cr in the corresponding period the previous year. The firm’s standalone total rev-enue stood at 10,843 cr as compared with 16,208 cr in the same period last year. “Growth continues to be impacted by subdued demand following the gen-eral economic slowdown, higher axle loads, liquidity stress and low freight availability for cargo operators,” the company said in a press release. Com-menting on the firm’s performance, Guenter Butschek, CEO and MD, Tata Motors, said, “The downturn in the au-tomotive industry continued in Q3 as the economy slowed down. Despite gain-ing sequential market shares in M&HCV, ILCV and SCV this quarter, our financial performance was im-pacted due to the downturn coupled with the inventory corrections we took to get ready for BS VI. Our focus on re-tail acceleration and system stock re-duction helped us achieve a multi-quar-ter low inventory level in CV and PV, while simultaneously getting ready for a smooth transition to BSVI.”
The Global Analyst, Feb 2020, IUP Publications
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