India’s Tata Motors reported its third straight quarter of losses on Monday as chip shortages and rising uncooked materials costs hit the automaker’s backside line.
Internet losses widened to 44.41 billion rupees ($592.81 million) within the three months ending September 30, in comparison with a lack of 3.14 billion rupees in the identical quarter final yr.
Aided by a restoration within the firm’s home enterprise, income from operations rose greater than 14 % from the identical quarter in 2020 to 613.78 billion rupees.
“Semiconductor points and commodity inflation will proceed to affect the close to time period and we’re doing our greatest to handle them,” the Mumbai-headquartered agency stated in an announcement.
Tata Motors’ UK subsidiary and Britain’s greatest carmaker Jaguar Land Rover was significantly impacted by the worldwide chip scarcity, with revenues falling 11.1 % in comparison with the identical quarter final yr.
Semiconductor manufacturing cuts in the course of the pandemic have prompted a worldwide scarcity of the microchips, that are an important uncooked materials in electronics and a key element in automobile manufacturing.
“The worldwide semiconductor scarcity stays difficult however I am happy to see the actions now we have been implementing to scale back the affect,” Jaguar Land Rover chief govt officer Thierry Bollore stated in an announcement.
“With robust buyer demand (and) with a document order ebook, we’re effectively positioned to return to robust monetary efficiency as semiconductor provide begins to enhance,” he added.
The corporate’s India enterprise recovered sharply within the quarter because the financial system rebounded from the dampening affect of the pandemic, with revenues leaping 90.7 % year-on-year as gross sales of each passenger and business autos improved.
Revenues from the newer electric-vehicle enterprise grew three-fold, with the corporate reporting its highest-ever quarterly gross sales of two,704 automobiles.
Shares in Tata Motors closed 0.56 % larger in Mumbai forward of the earnings announcement.
Covid woes and chip shortages hold Tata Motors within the crimson
© 2021 AFP
Losses widen at Tata Motors on chip shortages, rising bills (2021, November 1)
retrieved 1 November 2021
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