Now Reading: Tata Motors Q1 Profit Falls 80% on Rising Input Costs
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Tata Motors Q1 Profit Falls 80% on Rising Input Costs
Tata Motors Passenger Vehicles reported an 80.3% fall in consolidated net profit to Rs 775 crore for the June quarter, even as revenue rose 9.3% to Rs 95,799 crore. The slide was…
The Story in Brief
Tata Motors Passenger Vehicles reported an 80.3% fall in consolidated net profit to Rs 775 crore for the June quarter, even as revenue rose 9.3% to Rs 95,799 crore. The slide was driven by weakness at Jaguar Land Rover, whose profit after tax dropped 73% to £66 million, and by rising input costs that pushed variable marketing expenses to 7.1% of sales. The Times of India reports that higher incentives and commodity inflation, equivalent to 4.5% of domestic revenue, weighed heavily. EV volumes, however, grew 112% year-on-year, according to NDTV Profit. Tata Motors has raised prices by up to 1.5% but plans gradual hikes.
The Indian Opinion
The 80% profit drop at Tata Motors should not be read as a collapse of India's favourite auto stock. JLR's supply woes and a spike in commodity costs, not weak demand, are the culprits. The domestic business, including EVs, is growing. The lazy narrative of a sinking company ignores that revenue rose 9%. Watch the September quarter: if input costs keep climbing without price pass-through, margins will tell the real story.
Sources (2): ndtvprofit.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
