October 31, 2018 14:14 CET
Tata Motors on Wednesday reported a loss for the three months ended September, dented by falling Jaguar Land Rover sales and a one-time charge related to a subsidiary closure in Thailand.
Retail sales of its Jaguar and Land Rover vehicles fell 13 percent, hurt particularly by tariff changes in China and escalating trade tensions between China and the U.S.
“In JLR, market conditions, particularly in China, have deteriorated further,” Tata Chairman N. Chandrasekaran said. “To weather this volatile external scenario, we have launched a comprehensive turnaround plan to significantly improve our free cash flows and profitability.”
Tata Motors said it plans to cut costs and improve JLR’s cash flows by 2.5 billion pounds ($3.2 billion) over 18 months.
The automaker lost 10.49 billion rupees ($141.8 million), compared with a profit of $335.7 million in the year-ago period, the company said. That was worse than the estimate of a loss of $32.4 million, according to Refinitiv data.
Total expenses during July-September rose 8.6 percent, while revenue climbed to $9.64 billion from $9.41 billion rupees a year earlier.
The automaker incurred a one-off charge of $59 million attributed to the closure of operations at its Thailand-based subsidiary.
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