Tata Motors, which owns Jaguar Land Rover (JLR), posted a larger-than-expected quarterly loss on Monday and warned of growing inflationary costs.
Following a brief recovery near the end of 2020, semiconductor shortages, supply chain delays, COVID-19 restrictions, and rising raw material prices have wreaked havoc on automakers around the world.
Tata Motors said in an exchange filing that "demand remains strong despite near-term concerns... the semiconductor supply situation is gradually improving while inflation issues linger."
According to, the company expects chip shortages at JLR to continue through 2022 as suppliers gradually ramp up production. It is also engaging directly with chip manufacturers to secure longer-term supplies for the Range Rover maker.
Tata Motors consolidated net loss for the quarter ended Dec. 31 was 15.16 billion rupees ($203.23 million), compared to a profit of 29.06 billion rupees a year earlier, when pandemic-related restrictions were eased and sales increased.
However, due to severe semiconductor shortages and supply chain interruptions, Tata Motors' recovery was short-lived, and the company returned to the red.
According to Refinitiv IBES data, experts predicted the Mumbai-based company to disclose a loss of 3.30 billion rupees for the reporting quarter.
For the quarter, Tata Motors' earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was 10.2%, exceeding analysts' expectations of 9.3%.
Total revenue from operations declined 4.5% to 722.29 billion rupees in the quarter, falling short of expectations of 775.93 billion rupees.