Home grown auto major Tata Motors expects to register “no or inadequate” profit in 2013-14 in the wake of demand slump due to prolonged slowdown in the economy.
The prolonged slowdown in the economic activity, weak consumer sentiment, subdued infrastructure activity, tight financing environment with high interest rate continued to impact the performance of the automobile industry and the company, Tata Motors said in its postal ballot notice sent to shareholders.
It said that the company has been making necessary efforts to improve its performance and has been aggressively pursuing and implementing its strategies, including launch of new nbso online casino products and cost reduction initiatives.
The results of these initiatives are likely to be felt in the coming years, it added.
“Owing to the above factors, the financial performance of the company has worsened and it is likely that the company will have no profits/inadequate profits for the financial year 2013-14,” Tata Motors said.
The company had recorded profit before and after tax for the nine months ended December 31, 2013 of Rs 391.13 crore and Rs 1,151.13 crore, respectively.
Tata Motors will announce its financial results on Thursday.
Source : http://businesstoday.intoday.in/story/tata-motors-expects-no-or-inadequate-profit-in-2013-14/1/206681.html