Tata Motors, India’s largest automobile company by revenue, has posted a significant decline in net profit for third quarter. The plunge is mainly due to lower earnings at its overseas unit, Jaguar Land Rover (JLR) and higher losses in its domestic business. The decline is much higher than the expected range of 25-35 per cent.

The company’s profit fell down to 1.12 billion rupees ($16.73 million) in Q3 of financial year 2016 from 29.53 billion rupees a year earlier. Consolidated sales during the quarter was down about 2 per cent to 67,864.95 crore rupees.

Following demonetization, company’s domestic segment suffered a cutback in demand with a “fall of nine per cent year-on-year in sales”.

JLR, UK’s largest car manufacturer saw a decline in profits from 440 million pounds to 167 million pounds during Q3 due to unfavorable foreign exchange, higher marketing expense, amortization and depreciation.

The October-December quarter was also significant for the company due to exit of former chairman, Cyrus Mistry.