Tata Motors PV posts quarterly loss as JLR restructuring costs bite

India’s Tata Motors Passenger Vehicles reported a consolidated net loss for the July-September quarter on Friday, hit by a one-time charge in exceptional charges, as the automaker navigated restructuring costs and pressure at its luxury Jaguar Land Rover business.

The Tata Group company reported a second-quarter consolidated loss of 55.31 billion rupees ($587.48 million) compared to a profit of 761.7 billion rupees in the year-ago period.

Its British Jaguar Land Rover unit continues to recover from a cyberattack that disrupted production and sales last year, while the company undertakes a restructuring programme that includes employee separation costs and asset impairments.

JLR’s performance remains critical to Tata Motors’ overall profitability, with the automaker also facing pressure to restore margins and improve cash generation.

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The company quoted the charge at 67.38 billion rupees.

Revenue for the quarter rose to 969.20 billion rupees from 723.49 billion rupees, on a consolidated basis.

The Punch and Nexon maker’s results come after domestic peers Maruti Suzuki and Hyundai Motor India reported a decline in quarterly profits, while Mahindra and Mahindra posted a rise.

Its parent company, Tata Sons, is embroiled in a governance dispute over the reappointment of chairman N. Chandrasekaran, with majority shareholder Tata Trusts opposing the board’s decision.