Tata Motors Q1 net profit halves on forex loss

MUMBAI: Foreign exchange losses after Britain’s decision to leave the European Union and higher expenses offset strong sales growth at India’s Tata Motors , more than halving its net profit in the April-June quarter.
Tata Motors’ profit was hit by forex losses of 22.96 billion rupees ($342.43 million) mainly due to pound depreciation post-Brexit vote and adverse commodity derivatives impact of 1.67 billion rupees in the quarter, it said in a statement on Friday.
Chief Financial Officer C Ramakrishnan said while the company cannot predict whether the foreign exchange impact will continue, it will be cautious and closely monitor and assess market conditions in Britain and the EU.
“We need to be careful ... that is why we have a fairly robust hedge book so we are not subject to so much volatility,” Ramakrishnan said.