Tata Motors Q3 2020 report: 67.2% growth in net profit
In an encouraging development, Tata Motors has recorded a 67.2% surge in net profit for the December quarter. It reported a consolidated net profit of Rs. 2,906 crore for Q3 2020, compared to a net profit of Rs. 1,738 crore it posted in Q3 2019. The gain recorded as against the last quarter is likely due to the easing of coronavirus-induced restrictions.
It had recorded Rs. 314 crore loss in Q2 2020
As the pandemic hit Tata Motors' business hard in most of its key markets, the automaker had reported a loss of Rs. 314 crore in the previous quarter. Further, it posted a net loss of Rs. 638.04 crore last year, as against a loss of Rs. 1,039.51 crore in 2019.
Highest sales in PV business reported in 33 quarters
Additionally, the domestic commercial vehicle business of Tata Motors saw a growth of over 48% in Q3 as compared to Q2. Retail sale at the company's Jaguar Land Rover unit was up by 13.1% from the last quarter, but was 9% lower than the pre-pandemic levels. The company informed that its PV (passenger vehicle) business witnessed its highest sales in the last 33 quarters.
Total revenue rose to Rs. 14,630.60 crore
According to Tata Motors, its revenue from operations rose 5.5% to Rs. 75,654 crore as against Rs. 71,676 crore a year ago, while the total revenue grew to Rs. 14,630.60 crore, compared to Rs. 10,842.91 crore last year.
Separately, Tata's passenger vehicles have become costlier
Separately, Tata Motors, last week, announced a price-hike on its passenger vehicle range by up to Rs. 20,000 to offset rising input costs and semiconductor costs. The company stated, "Rising input costs and material costs of steel, precious metals and semiconductors have compelled the company to pass on the part of the cost to customers."
