Tata Motors said on Friday its consolidated net loss in the first quarter of current fiscal increased to Rs 8,438 crore from Rs 3,698 crore in the corresponding quarter of last year.
Total revenue from operations nearly halved to Rs 31,983 crore in Q1 FY21 from Rs 61,467 crore in Q1 FY20. Finance costs increased by Rs 165 crore to Rs 1,877 crore due to higher gross borrowings in the same period.
Tata Motors said the outlook remains uncertain for the year with Covid-19 infections continuing to rise and intermittent lockdowns in many countries. However, it expects a gradual recovery of demand and supply in the coming months.
"We are committed to significantly deleveraging the business in the coming years and aim to generate positive free cash flows over last three quarters of the year by focusing on better front end activations of our exciting product range, and executing our cost and cash savings with rigour," the company said in a statement.
Jaguar Land Rover's (JLR's) net revenue declined 44 per cent to 2.9 billion pounds in Q1 FY21.
"The Covid-19 pandemic deeply impacted the auto industry in Q1 FY21," said Guenter Butschek, CEO and Managing Director of Tata Motors.
"Post a calibrated restart at all plants in mid-May, we gradually scaled up our capacity while prudently safeguarding the health and well-being of our employees as well as the larger ecosystem. Even as we continue to address the challenges, we see some disruption due to the intermittent shutdowns and supply chain bottlenecks," he said.
Butschek said the company has witnessed some green shoots emerging in passenger vehicles owing to some pent up demand pre-Covid and is hopeful for a full recovery of the commercial vehicle industry by end of the fiscal year with a gradual pickup of demand aligned to the economic recovery.
"We remain focused on making Tata Motors more agile to improve our market, operational and financial performance by reducing costs, generating free cash flows and providing the best in class customer experience," he said.
Tata Motors has called out a cash improvement programme of Rs 6,000 crore including a cost improvement programme of Rs 1,500 crore. The capital expenditure is expected to be around Rs 1,500 crore for FY21.
JLR Chief Executive Ralf Speth said as the lockdowns ease, the company will emerge from the pandemic with an advanced product range, and with the financial and operating measures in place to return to long-term sustainable profit.
"The fundamental strengths of Jaguar Land Rover have been tested in 2020, and we will pass this test to succeed in the future.