The Economic Times - Mumbai, 7/26/2019 Cropped page Page: 5

strategy and adapting to the tough mar-ket environment. We will build on ourstrong foundations and increased opera-ting efficiency to return to profit this fi-scal year,” said Ralf Speth, the chief ex-ecutive of JLR.

The company said the Project Charge atJLR to cut costs and improve cash flowshad started to deliver and that cash out-flows had reduced at the unit. According toTata Motors, the Chinese market has stabi-lised and lower capital expenditure wouldfurther support cash flows.

Proposed investment for JLR in fiscal2020 has been further reduced to £3.8 bil-lion as against the earlier plan of £4 billion.

In the Indian market, Tata Motors suf-fered from poor consumer sentiment inboth commercial vehicle and passengervehicle segments.

While CV sales were hit by slowing in-frastructure activities, pulling down sa-les by 16%, volume in the passenger vehi-cle segment fell by a steeper 30%.

The company attributed the fall in PV sa-les to inventory correction.

■ TaMo to Find it Tough to Meet Guidance��9

Our Bureau

Mumbai: Tata Motors’ consolidated lossswelled to double from a year earlier inthe fiscal first quarter, as a prolongedslowdown in the global markets and lo-wer local sales hurt India’s largest manu-facturer of vehicles by revenue.

The company, which makes cars andSUVs to large commercial vehicles aswell as owns Jaguar Land Rover, posted aloss of . 3,680 crore for the April-June qu-arter, compared with . 1,863 crore a yearearlier. Analysts on average were expec-ting a loss of . 1,970 crore, according to aBloomberg compilation of estimates.

Adouble-digit decline in vehicle sales im-pacted revenue, which fell 7% to . 61,647crore. Operating profit margin narrowedby 1.3 percentage point to 6.2%, weighed byhigh warranty and marketing cost on boththe JLR and Tata brands.

JLR is facing a slowdown in most of itskey markets, except its home market ofthe UK, with sales for the quarter falling11.6%. In its biggest market of China, vo-lume fell 29%. The luxury carmaker is al-so exposed to an unfavourable Brexit aswell as stringent emission rules in Euro-pe given its high dependence on dieselengine variants.

“Jaguar Land Rover is in a period of ma-jor transformation. We are simplifyingour business, delivering on our product

Tata Motors Q1 Loss Doublesas JLR, Domestic Sales Fall

. 3,680 CRLOSS POSTED FOR APR-JUN QUARTER

IndiGo DividedThe warring promoters of

IndiGo have agreed to a

middle ground. But the

relationship is beyond

mending.

What’s in Deficit?A preoccupation withfiscal deficits is notwarranted. By focusingon an accounting flaw,

are we missing out on real policy-issue debates?

Smartphones forMillennials

Why smartphone makers

love millennials. Avid

technology users with

purchasing power, they

upgrade to the latest smartphone

with a messianic zeal.

Hydropower AgainThe government has been

desperately trying to

revive stalled renewable

power projects to meet its

2022 green energy target. The focus

seems to be shifting back from wind

and solar to hydropower.

TODAY ON

5�THE ECONOMIC TIMES | MUMBAI | FRIDAY | 26 JULY 2019 | WWW.ECONOMICTIMES.COM

Brands: Creating Desire

Nissan Motor India, as part of the newmid-term plan announced in September2018, had already come out with the Emp-loyee Voluntary Separation Scheme aspart of measures to cut costs. People inthe know say the process had begun in In-dia almost six months ago, although notmany employees had opted for the offer.Some of the 1,700 targeted jobs in Indiawould be part of the 2018 separation plan.

Nissan Motor has not been a great suc-cess locally during its decade-long pre-sence in India. Its attempt to crack themass market with the Datsun brand andchallenge Maruti Suzuki failed, and themother brand Nissan took a back seat

with focus shifting to Datsun.Its latest attempt to reinforce the Nissan

mother brand with the launch of KicksSUV also failed, with the model averagingabout 200-300 units per month. The brandhas been persistently hurt by changes intop management, and a weak sales andmarketing strategy, say experts.

“With such a large factory and R&D set-up including a digital hub, there is a lot atstake in India. Yes, the brand has beenhit, but there is a plan being put in placeto revive the operation,” an industry ex-ecutive close to Nissan Motor India said,requesting anonymity.

At the end of FY19, Nissan Motor Indiasold 36,525 units registering a decline of30% in a market that grew 3%, and despitethe launch of new Kicks. In the threemonths of FY20, Nissan Motor India’s sa-les halved to 5,000 units with a market sha-re of just 0.75%. At the end of FY18, NissanMotor India was sitting on loss of . 238 cro-re on revenue of about . 9,778 crore, as perdata sourced from Veratech Intelligence.

Despite its sub-optimal presence in India,exports played a key role in the survival ofNissan Motor’s operations in the country.People close to the company say exportswill continue to play an important role andwith one new product planned every year.

12,500No. of workers to be fired globally over next 2-3 years

6,400No. of empolyees that have been asked to leave

File photo Nissan India plant near Chennai

Ketan Thakkar & Nehal Chaliawala

Mumbai: Nissan Motor’s global rightsi-zing exercise would leave its painful im-print on India, with the Japanese car ma-ker pink-slipping more than 1,700 emplo-yees in the country. That means India wo-uld account for about one in seventargeted exits globally.

As the car maker hits its lowest decadalprofits, it has decided to retrench about12,500 workers across the world in thenext three years. Of these, more than6,400 have already been asked to leave,while the rest facing forced exits will beinformed in the next two to three years.

A Nissan Motor India spokesperson de-clined to comment on local implicationsof the global rightsizing.

Renault Nissan Alliance India plant onthe outskirts of Chennai houses over7,000 employees.

In a presentation to investors in Tokyoon Thursday, Nissan said that as part ofits initiative to improve efficiency, it willgive pink slips to workers around theworld. Besides India, Nissan will axe1,420 jobs in the US, about 1,000 in Mexico,830 in Indonesia, and another 880 roles attwo facilities in Japan.

Nissan India to Cut 1.7K JobsMove, to be carried out in 2-3 years, comes after co’s profit hit 10-year low globally

CCI NG 3.7 Product: ETMumbaiBS PubDate: 26-07-2019 Zone: MumbaiCity Edition: 1 Page: ETMCPG5 User: sandesh.pingale Time: 07-26-2019 00:04 Color: CMYK

e=

STATEMENT OF UNAUDITED STANDALONE AND CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER JUNE 30, 2019(7 in lakhs , except per share data)

STANDALONE CONSOLIDATED

Quarter ended Year ended Quarter ended Year ended

S1. Particulars 30.06.2019 30 .06.2018 31.03 .2019 30 .06.2019 30.06.2018 31.03.2019- j

a: - No. Unaudited Unaudited Audited Unaudited Unaudited Audited

I l k ' 1 1 I - sip- 1 Total Income from operations 75 ,848 68 , 436 2,77 , 684 88 ,716 70 ,053 3,11 ,870

2 Net Profit before tax 1 ,917 7 , 666 27 , 240 2,796 8 ,035 29 ,903

3 Net Profit after tax 1 ,224 4 , 970 17 , 275 1,767 5 ,204 18 ,937

4 Total Comprehensive Income[comprising Net Profit (after tax) and Other

a Comprehensive Income/(expense) (after tax)] 941 4 , 541 16 , 145 1,308 4 ,790 17,064

5 Paid -up eq uity share capital ( face value of 710 each ) 4 ,677 4 , 674 4 ,674 4,677 4 , 674 4,674-

6 Paid-up value of Non-Convertible Debentures(without adjusting transaction cost) 47 ,000 61 ,450 52,000 47 ,000 61,450 52 ,000

~ . F rv

_ _

h 7 Other equity as shown in the Audited Balance Sheet as at 1,16,287 1,19,275

aesa 8 Earning per share on net profit after tax(fully paid up equity share of 710 each)

. r . , (a) Basic Earning Per share 2.62 10.63 36.97 3.46 11.16 39.29

r .l (b) Diluted Earning Per share 2.60 10.57 36.73 3.44 11.09 39.04

r 1 1 7 Notes to the Statement of unaudited Financial results for the quarter ended June 30, 2019:} 1 The above is an extract of the detailed format of quarter ended June 30 , 2019 Financial results filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing Obli gations

and Disclosure Requirements) Regulations , 2015. These financial results are available on BSE Ltd website (URL :www.bseindia.cont/corporates), National Stock Exchange of IndiaMaine Limited website (URL: www.nseindia.co rWcorporates) and on the Company's website (URL: https'/www.pvrcinemas.com/corporate).

+* , r I I

_

' 2 The above Unaudited Financials results for the quarter ended June 30, 2019 have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held,( )

I on July 25, 2019. The Statutory Auditors of the Company have carried out review of the above financial results pursuant to Regulation 33 of the Securities and Exchange Board ofIndia (Listing Obligations and Disclosure Requirements) Regulations , 2015, as modified by Circular No. CIR/CFD/FAC/62/2016 dated July 05, 2016 (herein after referred to as 'theListing Regulations, 2015") and an unmodified report has been issued.

3 With effect from April 1, 2019, the Company has adopted Ind AS 116 , 'Leases ' retros pectively, with the cumulative effect of initially applying the standard, recognised as anadjustment to the opening balance of retained earnings as on the date of initial application (A pril 1, 2019). Accordingly, the Company is not required to restate the comparativeinformation for the year and quarter ended March 31 , 2019 and quarter ended June 30, 2018 .

\'%On April 1, 2019, the Company has recognised, a lease liability measured at the Present value of the remainin g lease payments and Right-of-Use (ROU) asset at its car ry ing amount6=0 as if the standard had been applied since the lease commencement date , but discounted using the lessee's incremental borrowing rate as at A pril 1 , 2019.

I f The major impact of adopting Ind AS 116 on the standalone and consolidated financial results for the quarter ended June 30 , 2019 is as follows:

+ J I ,

Profit before tax Quarter ended June 30 ,2019 Changes due to adoption Ind AS 116 Quarter ended June 30,2019 as reported(without adoption of Ind AS 116) [Increase/ (decrease )] (with adoption of Ind AS 116)

Standalone 5,471 (3,554) 1,917

r Consolidated 6,898 (4,102) 2,796

4 Disclosure pursuant to Regulation 54 (2) of Securities Exchange Board of India (Listing Obli gations and Disclosure Requirements) Regulations, 2015 , are available on BSE andCompany' s website.

5 Results for the quarter ended June 30, 2019 are not strictl y comparable with quarter ended June 30 , 2018 on account of adoption of Ind AS 116 Leases ' and acquisition of SPIZ-A Cinemas Private Limited .Al

iii jV _ er For and on behalf of the Board of Directors of PVR LIMITED

_ yes sd/-

Place : New Delhi Aja y BijliDate : July 25 , 2019 Chairman cum Managing Director

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