Tata Motors Q4 net loss narrows to Rs 1,033 cr; revenue falls 11%

The improvement in consumer sentiment, buoyancy in e-business, firming freight rates, reopening of schools and offices helped regenerate demand, says company's executive director

Passenger vehicle major Tata Motors on Thursday reported narrowing of consolidated net loss (attributable to shareholders of the company) to Rs 1,033 crore for the quarter ending March 31, 2022. It reported consolidated net loss of Rs 7,605 crore in the year-ago period and Rs 1,516 crore in Decemeber quarter.

Consolidated revenue declined 11% to Rs 78,439 crore as against Rs 88,628 crore in Q4FY21. 

Girish Wagh, Executive Director, Tata Motors Ltd said: “The Indian Commercial Vehicles sector, deeply impacted for two successive years, showed promising signs of growth in FY22 supported by a steady recovery in the economy, rising industrial activity and reopening of markets. At Tata Motors, the early adoption of a holistic ‘Business Agility Plan’ enabled us to protect and serve the interests of our customers, dealers and suppliers as well as smartly manage supply related challenges including the global shortage of critical electronic parts.

"The improvement in consumer sentiment, buoyancy in e-business, firming freight rates, reopening of schools and offices

and higher infrastructure spends in road construction and mining helped regenerate demand. We optimized production,

introduced new passenger and cargo mobility solutions and accelerated sales to grow every quarter and gain higher

market share in every segment of commercial vehicles." 

On Thursday, the company's scrip on BSE closed 4% lower at Rs 372.

On a standalone basis, the automaker reported a net profit of Rs 413.35 crore in the period under review as against a net profit of Rs 1,645.68 crore in the fourth quarter of 2020-21.

Standalone total revenue from operations stood at Rs 17,338.27 crore in the fourth quarter as compared to Rs 13,480.42 crore earlier.

Tata Motors has been under intense pressure due to a crunch in supply of semiconductors, it said, adding that full-year performance at JLR was significantly impacted by the constraint on production and sales due to the chip shortage.

However, it said it expected performance to improve through the year as the China COVID-19 situation and semiconductor supplies improve, adding that it aims to get to near net auto debt free by FY24.

Tata Motors has hiked prices at least four times in fiscal year 2022.

For the quarter ended March 31, Tata Motors' cost of material consumed was down 8.8% at Rs 47,590 crore.

The company's British arm Jaguar Land Rover (JLR) posted revenue of 4.8 billion pounds in the fourth quarter and retail sales of vehicles stood at 79,008 units.

For FY22, JLR's revenue was 18.3 billion pounds, down 7 per cent from the prior year. Retail sales were at 3,76,381 units, down 14 per cent compared to FY21, the company said.

"Full year performance (of JLR) in FY22 was significantly impacted by the constraint on production and sales resulting from the global chip shortage," the company said.

JLR CEO Thierry Bollor said the environment remains difficult in light of the global chip shortage and other challenges.

"However, I'm encouraged by the continuing strong customer demand for our products, highlighted by a record order book," he said, adding the company is rapidly progressing its plans for a new generation of electric vehicles with its all-electric Jaguar strategy and battery electric vehicle (BEV) first EMA platform for new Land Rover products.

On the commercial vehicles front, Tata Motors said domestic wholesales were at 1.1 lakh units in the fourth quarter and for FY22 it was at 3.23 lakh units.

As far as the passenger vehicles (PV) segment was concerned, Tata Motors said in Q4 PV domestic wholesales were at 1.23 lakh units, while for the full year FY22 domestic wholesales were at 3.7 lakh units. Sales of electric vehicles in Q4 were the highest at 9,100 units and for FY22 it was at 19,100 units.

Tata PV business delivered a consistent and strong performance leading to the highest quarterly and annual sales in Tata Motors' history, the company said.

"In a challenging year disrupted by Covid, semiconductor crisis and steep increase in commodity prices, Tata Motors set several new records in passenger and electric vehicles to make FY22 a landmark year," Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd Managing Director Shailesh Chandra said.

Going forward, he said,"The demand for our 'New Forever' range continues to remain strong even as the semiconductor situation and supply side challenges remain uncertain. We remain agile and will continue to take prudent actions while enhancing our focus on future-fit initiatives of transforming customer experience digitally and strengthening our established lead in sustainable mobility.