Tata Motors profits plummet 96% after cash ban
14 Feb 2017 - 22:24
Mumbai: India's largest carmaker Tata Motors yesterday 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 1.12bn rupees ($16.73m) from 29.53 billion rupees a year earlier, the Mumbai-based company said. Revenue fell 4.3 percent to 685.41bn rupees. The company's commercial vehicles business saw a "demand shrinkage" after the Indian government withdrew 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.
Shares in Tata Motors fell 7.3 percent on the Bombay Stock Exchange yesterday.