Tata Motors PV Q3 Results: Investors were unhappy after seeing the results, the company suffered a loss of Rs 3486 crore; impact of cyber attack
New Delhi. Tata Motors PV Q3 Results: Tata Motors Passenger Vehicles released its third quarter results on Thursday. The company has suffered huge losses. A cyber attack on its UK luxury unit Jaguar Land Rover hit sales and led to a one-time charge of about ₹16 billion ($177.18 million).
Range Rover SUV maker Tata Motors Passenger Vehicles Ltd has suffered a loss of Rs 3486 crore during October-December. This figure was in profit in the same quarter last year. The company had made a profit of ₹5,485 crore.
The management of Tata Motors Passenger Vehicles expects a significant improvement in the fourth quarter as demand remains strong in the domestic business, and the company is confident of accelerating growth through new launches and innovations.
How were the quarterly results of Tata Motors Passenger Vehicles Ltd?
Revenue in the quarter increased by 25% to ₹15,268 crore from the same quarter last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 7% from last year to ₹689 crore in the quarter. EBITDA margin declined 80 basis points to 4.5% from 5.3% last year.
Consolidated free cash flow for the quarter was negative at ₹1,790 crore due to lower volumes at JLR and impact on working capital.
Cyber attack on JLR
Tata Motors Passenger Vehicles subsidiary JLR was cyber attacked. The company had to suffer huge losses due to this attack. The cyberattack also forced JLR to halt production for five weeks until early October, causing a loss of $228.5 million in the July–September period, and prompted the British government to provide a loan guarantee of 1.5 billion pounds ($2.04 billion) to support the luxury car maker's supply chain.
JLR is Britain's largest carmaker, accounting for 80% of its parent company's revenues, with the rest coming from domestic businesses.
Tata Motors Passenger Vehicles includes Tata Group's Indian car manufacturing business and JLR, which produces a large amount in the UK. In November, the company spun off its commercial vehicle business (TATM.NS) into a separate listed entity.
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