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Tata Motors' consolidated Q3 net profit plunges

Tata Motors stock falls over 7 percent over weak Q3 net profit

The company reported net profit of Rs 111.57 crore compared to net profit of Rs 2952.67 crore in the corresponding period of the previous year.

Standalone net loss widened to Rs 1052.13 crore from Rs 108 crore a year earlier.

The rupee strengthened about 15 percent against the British pound a year ago, eroding the repatriated earnings from the luxury unit, which contributes about 86 percent of Tata Motors' operating profit.

"The segment witnessed major pressure with a fall of nine per cent year-on-year" in sales, the company said. "That is because the JLR margin seem to be settling in to the single digit space unlike (in) the past where a 14% was a given". The company's vehicle segment grew by 31 percent year-on-year on the back of strong performance by Tiago.

Tata Motors Ltd.'s quarterly profit plunged 97 percent after margins at its luxury Jaguar Land Rover unit narrowed and costs surged.

Automobile giant Tata Motors on Tuesday reported a steep drop of 96.20 per cent in its net profit (post profit/loss in respect of joint ventures and associate companies) for the quarter ended December 31, 2016.

Tata Motors blamed the demand shrinkage on demonetisation. "On a full year basis, we expect sales to be flat", said C Ramakrishnan, chief financial officer, Tata Motors' adding that the company expects better margins in Q4.

"What is it that we need to be a high performance organization- being lean, it's about being agile and it's about having clearly addressed and delegated accountability", Butschek told a news conference on Tuesday.

auto makers in India were also hit in the third quarter by Prime Minister Narendra Modi's "demonetisation" move in November, when he declared notes of 500 rupees and 1,000 rupees illegal tender, taking about 86% of total currency out of circulation. "More so, the JLR product mix has altered quite substantially" and variable marketing spending has been on the rise, Sabarad said. The United States accounts for about 25% of JLR's sales.