Tata Motors shares fell nearly 4% after reports said a cyberattack at Jaguar Land Rover could wipe out more than last year’s profit.
A media report estimated revenue losses of over £3.5 billion.
The impact is deepened as JLR had no cyber insurance in place when the attack took place in August.
Shares of Tata Motors fell as much as 4% on Thursday after a report suggested that the cyberattack on Jaguar Land Rover (JLR) could cost the automaker more than its profit from the previous financial year. The company’s BSE-listed stock was down 2.64% at ₹664 at closing of the trading session.
The sell-off was triggered by a Financial Times report claiming that JLR has suffered mounting losses after a cyberattack forced the shutdown of its systems and UK factories on September 1. Citing experts, the report said the group’s revenue could take a hit of more than £3.5 billion, translating into about £1.3 billion in gross profit losses.
The company has not disclosed the exact financial hit from the production halt. Earlier a report by BBC claimed that JLR is losing about £50 million ($68 million) each week, with many of its 33,000 employees asked to stay home until operations resume.
The impact has been worsened by the absence of cyber insurance to cover the losses. The British media reported that the company was still negotiating a deal with insurance broker Lockton when the attack occurred.
JLR first disclosed the cybersecurity incident on September 2, two days after it was hit on August 31, and announced a system shutdown. On September 10, the company said it was working with cybersecurity experts to restore global applications and confirmed that some data had been compromised. As investigations continued, JLR extended its operational pause to September 24 and later announced a further extension until October 1, citing the need for clarity and a phased restart of operations.
However, UK media reports suggest the shutdown could extend until November, citing feedback from JLR’s suppliers and dealers.
On Thursday, Indian stock exchanges sought clarification from Tata Motors on the reported losses.
Jaguar Land Rover contributes about 70% of Tata Motors’ consolidated revenue. The company reported a profit after tax of £1.8 billion for FY24 on total revenue of £29 billion. In past one month, Tata Motors shares have dropped 3.19%.
