Homegrown auto major Tata Motors on Friday reported a consolidated net loss of Rs 187.7 crore for the quarter ended September 30, hit by subdued demand for its vehicles in the domestic market.
The company had posted a loss of Rs 1,009.49 crore in the same period of 2018-19.
Total revenue during the period under review stood at Rs 65,431.95 crore as against Rs 71,981.08 crore in the year-ago period, Tata Motors said in a regulatory filing.
British arm Jaguar Land Rover (JLR) reported a pre-tax profit of 156 million pounds, 246 million pounds better year-on-year, it added.
The British brand's wholesales during the second quarter were up 2.9 per cent at 1,34,489 units.
'JLR has returned to profitability and revenue growth. This is testament to the fundamental strength of our business, our award-winning products, new technologies and operating efficiencies,' JLR chief executive Ralf Speth said.
Looking forward, the company would continue its product offensive, broadening its range of electrified vehicles, he added.
On standalone basis, Tata Motors said its net loss for the quarter was at Rs 1,281.97 crore as against a profit of Rs 109.14 crore in the year-ago period.
'The industry has been grappling with a long and sharp slowdown. Growth continues to be impacted by subdued demand, higher capacity from the new axle load norms, liquidity stress, low freight availability, weak consumer sentiment and general economic slowdown,' Tata Motors CEO Guenter Butschek said.
The sharp market decline over the last few months has impacted the company's second quarter performance as well which is disappointing, he added.
'With the onset of festive season, we are seeing initial green shoots this month with better retails in passenger vehicles. We hope that the slew of measures announced by the government so far, as well as their commitments to front end significant infrastructure investments, introduce a scrappage policy and ensure adequate liquidity to MSMEs will improve the situation in the coming months,' Butschek said.
The company's wholesales were down 44.1 per cent at 1,06,349 units as compared to the year-ago period.
Tata Motor's board, which met on Friday, approved raising funds of nearly Rs 10,000 crore through issuance of securities to Tata Sons and external commercial borrowings.
The board approved raising a total of Rs 6,494.35 crore from Tata Sons through issuance of securities via preferential allotment.
The company would raise Rs 3,024.35 crore from Tata Sons through preferential allotment of 20,16,23,407 ordinary shares at a price of Rs 150 per share. It would raise another Rs 3,470 crore through issuance of 23,13,33,871 convertible warrants of Rs 150 per warrant.
The company further said its board has also in principle approved and authorised the raising of additional funds up to Rs 3,500 crore through external commercial borrowings.
Tata Motors Group CFO P. B. Balaji said in a conference call that the funds raised through equity issue to parent Tata Sons will be utilised to reduce debt, while the sum to be raised via ECB 'when the market conditions are appropriate' will be used to refinance existing loans.
Tata Motors shares on Friday ended 4.87 per cent down at Rs 126.95 apiece on the BSE.
