Daily Times

MUMBAI: India’s largest carmaker Tata Motors Tuesday reported a 96 percent fall in quarterly profits, due to a cash ban which hit domestic business and weak sales at its luxury Jaguar Land Rover unit.

Consolidated net profit for the three months ending December fell to 1.12 billion rupees ($16.73 million) from 29.53 billion rupees a year earlier, the Mumbai-based company said.

Revenue fell 4.3 percent to 685.41 billion rupees.

The company’s commercial vehicles business saw a “demand shrinkage” owing to the Indian government’s shock move in November to withdraw high-value banknotes from circulation, it said. Prime Minister Narendra Modi’s demonetisation drive removed around 86 percent of India’s cash at a stroke, triggering massive queues outside banks and a cash shortage that has hit businesses across the country.

“The segment witnessed major pressure with a fall of nine percent year-on-year” in sales, the company said.

Its Jaguar Land Rover business saw “lower wholesale volumes and relatively weaker product mix… and overall higher marketing expenses,” the company said in its statement.