Tata Motors Q4 net profit dips 49% to Rs 1,109 crore

Source Getty

Source Getty

Weakness in the Chinese auto market resulted in a 5.8 percent decline in sales to 578,915 vehicles in the region.

Revenue from wholly owned subsidiary Jaguar Land Rover Automotive PLC fell 5 per cent to Rs 65,146 billion. JLR announced 4,500 job cuts in January.

JLR did, however, manage a slight turnaround in the final quarter of the financial year which ended 31 March, posting pre-tax profit of £120m after nine months of losses. The firm's annual revenue of £24.2 billion was down £1.2 billion year on year.

He further added, "In JLR, we continue to face challenges in China which we are addressing on priority".

It slumped from a £400 million profit in the previous financial year as it was hit by the economic slowdown in China.

So far the vehicle giant has spent more than £149 million on redundancy costs. Meanwhile, US giant Ford is expected to cut as many as 550 jobs from its United Kingdom operations in the coming weeks.

Tata said revenues were also affected by a one-off charge of 16.40 billion rupees it took past year due to accounting charges.

Taking extraordinary items out, the company had an operating loss of £358 million ($667 million) during the last financial year.

JLR's CEO Ralf Speth stated that the company is "reducing complexity" and transforming its business by cost savings and cash flow improvements, citing the fourth-quarter profits as an example of the ongoing turnaround. Speth continued that JLR will "go forward as a transformed company that's leaner and fitter", and that the sustained investment in new products and technologies will drive future demand.

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