With the company due to report fourth quarter earnings on the fiscal year ending March 31, Tata Motors, the Indian parent company of premium British automaker JLR has warned of decaying profit.
With the group expected to make the financial report today, Tata Motors warned investors it could have no profit at the standalone level for the fiscal year that just ended. According to a filling from the Mumbai-based multinational, the bad results are a consequence of the home country’s longer than expected economic slump, the higher interest rates incurred and also because of increased fuel costs.
Ahead of the loss-reporting conference call, yesterday the shares of Tata Motors dipped as much as 2.1 % to 427.50 rupees, on its way to reporting the highest value loss since April 15. According to median analysts estimates, Tata Motors could report a loss of 13.1 billion rupees ($222 million) for the fiscal year that just ended.
In Asia’s third-biggest economy, passenger car sales dipped for the first time since fiscal year of March 2002, because of failing consumer confidence due to a slowdown in economic growth, growing inflation and political unrest. Now that a new government, headed by Narendra Modi has just sworn in this week, automakers competing in India’s automotive market expect the downturn to fade away.