BENGALURU – Leopard Land Rover (JLR) owner Tata Motors reported a larger-than-expected quarterly loss on Monday and warned of rising inflation costs.
Car manufacturers around the world have been lack of chipsSupply chain disruptions, COVID-19 restrictions and raw material prices rose after a brief recovery in late 2020.
“Demand remains strong despite near-term concerns … the semiconductor supply situation is improving gradually while inflation concerns persist,” Tata Motors said in an exchange filing.
The company expects chip shortages at JLR to continue into 2022 as suppliers gradually ramp up production and is also engaging directly with chipmakers to ensure long-term supplies. more term for Range Rover it said.
Tata Motors’ consolidated net loss was 15.16 billion rupees ($203.23 million) for the quarter ended December 31, compared with a profit of 29.06 billion rupees a year earlier, when the easing was Pandemic-related restrictions have resulted in an uptick in sales.
However, the recovery was short-lived as severe semiconductor shortages and supply chain disruptions delayed production, and Tata Motors returned to losses.
For the reported quarter, analysts had expected the Mumbai-based company to report a loss of Rs 3.30 billion, according to Refinitiv IBES data.
Tata Motors earnings before interest, taxes, Depreciationand profit margin amortization (EBITDA), a key measure of profitability, was 10.2% for the quarter, above estimates of 9.3%.
Total operating revenue for the quarter fell 4.5% to Rs 722.29 billion, below estimates of Rs 775.93 billion.
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