Bad news for Noel Tata, this company profit fell by 62% to Rs…, hit by lower…

India.com

18 hours ago

Tata Motors on Friday reported a 62.2% year-on-year drop in consolidated net profit to Rs 4,003 crore for the June quarter, hit by lower volumes across segments, reduced profits at Jaguar Land Rover due to US tariffs, and a high base from gains on the sale of discontinued operations last year.
In the April–June quarter of the previous fiscal, the auto major had posted a net profit of Rs 10,587 crore, the company said in a regulatory filing. Revenue from operations came in at Rs 1,04,407 crore, compared to Rs 1,07,102 crore in the same period last year. Tata Motors Q1 Results
TML's performance in the quarter was impacted by volume decline in all businesses and a drop in profitability primarily at JLR, the company said.
Following the amalgamation of Tata Motors Finance Ltd (TMFL) – a wholly-owned step down subsidiary of the company – into Tata Capital Ltd, the company had received equity shares of TCL amounting to Rs 8,016 crore over the book value of net assets transferred as at appointed date of April 1, 2024, amounting to Rs 4,975 crore as gain on sale of discontinued operation in consolidated results, the filing said.
'Despite stiff macro headwinds, the business delivered a profitable quarter, supported by strong fundamentals. As tariff clarity emerges and festive demand picks up, we are aiming to accelerate performance and rebuild momentum across the portfolio. Against the backdrop of the upcoming demerger in October 2025, our focus remains firmly on delivering a strong second-half performance,' Tata Motors Group CFO PB Balaji said. How JLR Was Hit By US Tariffs?
Addressing an earnings call, he said, 'In the current quarter, we (JLR) have got hit by almost 250 million pounds on (US) tariff charges because even though the deal (UK-US trade deal) was announced on May 8, it got ratified only on June 30, and it is not with retrospective effect.'
Going forward, he said the correction for the reduction in tariffs from 27.5 per cent to 10 per cent under the US-UK trade deal and 27.5 per cent to 15 per cent, under the US-EU deal, along with the removal of the penalty for emission in the US will play through.
'Net impact is what we want to figure out a way to manage through the rest of the year,' he said, adding that while the US demand is holding up, China has introduced luxury tax on all imported vehicles and 'we have to figure out a way to manage that'.
JLR revenues were down by 9.2 per cent to 6.6 billion pounds, impacted by significant new US trade tariffs on the UK and EU-produced cars exported to the US, and the planned legacy Jaguar wind-down.
(With Inputs From PTI)