This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEI0U0D6_L.jpg
Automakers worldwide have been roiled by chip shortages, supply chain disruptions, COVID-19 restrictions and rising raw material prices after a short-lived recovery towards the end of 2020.
“Demand remains strong despite near term concerns … the semiconductor supply situation is improving gradually whilst inflation worries persist,” Tata Motors said in an exchange filing https://www.bseindia.com/xml-data/corpfiling/AttachLive/029deac0-b0df-48d1-9fe2-9d35442da0a1.pdf.
The company expects chip shortages at JLR to continue through 2022 as suppliers gradually ramp up production, and is also engaging directly with chip manufacturers to secure supply longer-term supplies for the Range Rover maker, it said https://www.bseindia.com/xml-data/corpfiling/AttachLive/029deac0-b0df-48d1-9fe2-9d35442da0a1.pdf.
Tata Motors’ consolidated net loss came in at 15.16 billion rupees ($203.23 million) for the quarter ended Dec. 31, compared to a profit of 29.06 billion rupees a year earlier, when an easing of pandemic-related restrictions led to a pick-up in sales.
However, the recovery was short-lived as acute semiconductor shortages and supply chain disruptions delayed production, and Tata Motors slipped back to losses.
For the reported quarter, analysts had expected the Mumbai-based company to report a loss of 3.30 billion rupees, according to Refinitiv IBES data.
Tata Motors’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin, a key measure of profitability, was 10.2% for the quarter, above estimates of 9.3%.
Total revenue from operations for the quarter fell 4.5% to 722.29 billion rupees, below estimates of 775.93 billion rupees.
($1 = 74.5950 Indian rupees)
