Tata Motors managing director Ravi Kant in Mumbai on Friday. (AFP)

Mumbai, June 26: Tata Motors today reported a consolidated net loss of Rs 2,505.25 crore for 2008-09 as the economic crisis hit its overseas arm, Jaguar Land Rover.

The Tata group company had posted a net profit of Rs 2,167.70 crore in 2007-08.

Tata Motors had acquired Jaguar Land Rover in March last year and the acquisition was completed in June 2008.

During the year, income from the JLR business stood at Rs 39,270.70 crore but there was an operational loss (earnings before interest, exceptional items and tax) of Rs 1,777.35 crore.

Tata Motors said Jaguar Land Rover had made a profit in 2007 and continued to do so in the first half of 2008.

However, the global meltdown resulted in Land Rover sales falling considerably in 2008. However, Jaguar was able to maintain its sales primarily on the back of a very strong consumer response to the newly-launched XF sedan.

“The company has actively responded to this changed situation by taking a number of urgent and long-term measures. These include cutting costs drastically and working on a plan of substantial cost reduction, aligning production with demand and tight control over cash flows. In addition, the company has successfully introduced new variants of the Jaguar and the Land Rover brands, and is to unveil the all new XJ sedan shortly,” Tata Motors said.

During the year, total income of the company nearly doubled to Rs 70,938.85 crore from Rs 35,660.07 crore in the previous fiscal.

The financial results for the year included the operations of JLR business for the period from June 2008 to March 31, 2009 and therefore, the company said the results were not comparable with the previous year.