Tata Motors Ltd’s net profit lowered 96% in the third quarter because of losses in its domestic business and a decline in sales at its British luxury car unit Jaguar Land Rover Automotive Plc, the company said in a statement. The October-December is the period when the company had faced controversies like Cyrus Mistry ouster and allegations were exchanged between Mistry and Ratan Tata.
The company’s net profit fell to Rs 112 crore as against Rs 2,953 crore in the corresponding quarter in 2015. Consolidated sales fell 2.2% to Rs 67,864.95 crore. However, exports for the company grew by 34.6% on a year-on-year basis.
JLR reported a net profit of £167 million (more than Rs 1600 crore) for the quarter ending in December 31, 2016 compared with the £440 million (more than Rs 4,300 crore) in the corresponding quarter of last year.
“During the quarter, commercial vehicle segments of the company witnessed demand shrinkage due to the demonetisation,” the company said in the statement. Shares of Tata Motors fell 7% on Tuesday on the Bombay Stock Exchange Sensex after the decline in net profit was reported. Tata Motors’ market value at the BSE was down Rs 6,000 crore compared with Monday, reported Business Standard.
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