Brexit bites Tata Motors as Q1 profit halves on forex loss

MUMBAI: Tata Motors Ltd’s consolidated net profit more than halved in the quarter ended 30 June as a foreign exchange loss stemming from the UK’s vote to exit the European Union and higher costs took their toll on India’s largest automaker by revenue.

Consolidated net profit in the quarter fell to Rs.2,260.40 crore from Rs.5,254.23 crore a year ago, missing analyst estimates, said Tata Motors. Net sales rose 10% toRs.66,101.27 crore from Rs.60,093.79 crore in the same period. Total costs rose 18% to Rs.63,993.99 crore.

A Bloomberg poll of 23 analysts had estimated a quarterly net profit of Rs.2,533 crore on net sales of Rs.65,111 crore.

Stand-alone profit fell 91.12% in the quarter to Rs.25.75 crore from Rs.289.84 crore a year ago. Net sales rose 10.22% toRs.11,311.24 crore.

Higher sales volumes both at the stand-alone business and the Jaguar Land Rover Ltd unit were “more than offset by the adverse FX (foreign exchange) impact of Rs.2,296 crore and adverse commodity derivatives impact of Rs.167 crore”, the company said in a statement.

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