Tata Motors Incurs Losses Up To INR 26,961 For Restructuring Underpinnings Of JLR

On Thursday, Tata Motors reported a massive loss of INR 26,961 in Quarter 3 December. The company said, It took one-time exceptional non-cash charge for asset impairment of 3.1 billion pounds. (Source: ET news)

The automotive company reported a net profit of INR 1,214.60 crore in 2017. On the other hand, the consolidated revenue of Q3 December has risen by 5 per cent year-on-year, amounting INR 77,001.

Difficult market conditions in China and inventory fallacies are attributed for poor quarterly performance as said by Tata Motors in a filing to BSE. (Source: ET news)

In the released report, the automotive company has said, We are announcing a non-cash exceptional charge to reduce the book value of our capitalised investments. This accounting adjustment is consistent with the other decisive actions that we must take as part of our Charge and Accelerate transformation programmes to create an efficient and resilient business, enabling Jaguar Land Rover to counter the multiple economic, geopolitical, technological and regulatory headwinds presently impacting the automotive industry. We are taking the right decisions now to prepare the company for the new technologies and strong product offensive for the future. (Source: ET news)

JLR is a subsidiary of Tata Motors and thus when the question posed in terms of quarterly loss. The Indian automotive company said that last year, in January JLR ( Jaguar Land Rover) proclaimed its plans to attain 2.5 billion of investment, working capital and profit improvements by March 2020 and so as to achieve the set aim, it is recommended to decrement workforce by 4,500 people. This loss is anticipated to be a one-time hit only, aggregating the cost 200 million. (Source: ET news)