India's Tata Motors has reported a wider net loss in the first quarter of fiscal 2023 as Jaguar Land Rover’s (JLR’s) earnings skidded and raw material costs grew. The flagship of India’s largest conglomerate, the Tata Group, posted a net loss of £495 million for the three months to June 30, compared with a loss of £445 million a year earlier.
Revenue edged up 8% to £7.19 billion on rising demand at its India passenger and commercial vehicles units. Expenses, which includes raw material costs, rose 12% to £7.77 billion. Net automotive debt also grew 25% to £60.7 billion.
Tata Motors attributed the increase in losses to JLR’s weak performance. The ongoing chip supply issues, inflation and Covid-related lockdowns in China weighed on JLR. The British luxury unit posted a bigger operational loss of £ 343.1 million for the quarter ended June 30, compared with a loss of £23.3 million a year earlier. JLR expects production to ramp up in the second quarter as it sees the chip supply scenario improving and the impact of Covid lockdowns in China reducing.
Tata Motors’s non-JLR portfolio (commercial & passenger vehicles business) turned around during the first quarter of fiscal 2023, aided by strong volumes and better price realisations. The commercial vehicles segment made an operating profit of £39.5 million as against an operational loss of £32.7 million in Q1FY22.