Don’t miss the latest developments in business and finance.

Tata Motors Q1 net loss widens to Rs 5,006 cr

Image
Capital Market
Last Updated : Jul 27 2022 | 6:31 PM IST

The auto major reported consolidated net loss of Rs 5,006.60 crore in Q1 FY23 as against a net loss of Rs 4,450.92 crore in Q1 FY22.

Revenue from operations increased 8.3% YoY to Rs 71,935 crore during the quarter ended 30 June 2022.

EBITDA stood at Rs 5,307 crore in Q1 FY23. EBITDA margin in Q1 FY22 was 7.4%, down 90 bps.

The company recorded a pre-tax loss of Rs 4,962 crore in Q1 FY23 compared with a pre-tax loss of Rs 2,581 crore in Q1 FY22.

JLR reported net loss of 482 million pounds in Q1 FY23 as against a net loss of 286 million pounds in Q1 FY22. Revenue declined 11.3% YoY to 4,406 million pounds in Q1 FY23. It was impacted by supply challenges including semiconductor shortages, slower than expected ramp-up of the New Range Rover and New Range Rover Sport production and China lockdowns.

The loss before tax in the quarter was (524) million pounds before a 155 million pounds favourable exceptional pension item.

Wholesales in Q1 were 6% lower sequentially. Retail sales in Q1 FY23 were 78,825 vehicles, broadly flat compared with Q4 FY22 and down 37% compared with Q1 FY22.

More From This Section

JLR expects significant improvement over the year with chip supply expected to improve through enhanced supplier engagement including long-term partnership agreements as well as ramping up New Range Rover and Range Rover Sport production. JLR continues to target achieving a 5% EBIT margin and 1 billion pound positive free cash flow in FY23. The medium and longer-term financial targets under the Reimagine strategy, underpinned by the Refocus transformation programme, remain unchanged, including improving EBIT margins to 10% or more by FY26 and improving free cash flow to achieve near zero net debt by FY 24.

Thierry Bollor Jaguar Land Rover's chief executive officer, said, "Our strategy to deliver the future of modern luxury to our clients continues at speed, as we accelerate our plans for an electric-first, brand-led business. Although headwinds from the global semiconductor supply and COVID lockdowns in China have impacted our business performance this quarter, I am pleased to confirm that we have a completely reinforced organisation setup to respond to the semiconductor crisis. Thisis now starting to recover production growth to achieve greater volumes and will allow us to take advantage of our record order book in the second quarter."

Tata Commercial Vehicles (Tata CV) recorded a profit before tax of Rs 302 crore in Q1 FY23. Revenue jumped 107.2% YoY to Rs 16,270 crore during the period under review. Tata CV Q1 CV domestic wholesales were at 95.9 K units (+124%), domestic retails were at 90.5K units in (+119%). The domestic CV market share of Tata CV de-grew to 42.5% in Q1 FY23 (down by 240 bps as compared with FY 22) with all segments gaining shares, which is expected to improve in coming quarters.

Girish Wagh, Tata Motors, said, "The CV industry continued to witness rising demand across all segments led by a reviving economy. With the sequential easing of semiconductor shortage and our ramp-up agility, Tata Motors delivered a strong quarter with sales of 1,01,113 units registering 100% growth versus Q1 FY22. During Q1 FY23, we marked a significant leap forward in our commitment towards promoting sustainable mobility with the delivery of approximately 100 e-buses and successful launch of the Ace EV, which provides a green and smart transport solution for a wide variety of intra-city applications. We also signed a strategic Memorandum of Understanding with leading e-commerce companies and logistics service providers to deliver 39,000 units of the Ace EV along with its enabling eco-system.

Furthermore, we also received a letter of allocation of 1500 e-buses from Delhi Transport Corporation, as part of the larger entitled order of 5000 e-buses, from the recently won CESL tender. Going forward, we remain cautiously optimistic about overall CV-demand while keeping a close watch on interest rates, input costs, transporter profitability, and semiconductor availability."

Tata Passenger Vehicles (TATA PV) recorded 122.5% YoY growth in revenue to Rs 11,556 crore in the first quarter of FY23. The segment reported a profit before tax of Rs 14 crore in Q1 FY23 as against a pre-tax loss of Rs 361 crore in Q1 FY22.

In Q1 FY23, Tata PV global wholesales stood at 130.4K units (up 102% YoY), PV domestic wholesales at 130.1K units (up 102% YoY) and domestic retails at 124.8K units (up 132% YoY). Tata PV's domestic PV market share improved by 220 bps to 14.3% in Q1 FY23.

Shailesh Chandra, managing director, Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility said, Demand for passenger vehicles continued to stay strong in Q1 FY23 even as the supply side remained moderately impacted. Overcoming all challenges, Tata Motors consistently set new sales records every month in passenger vehicle to record the highest ever wholesales and production of approximately 130,000 vehicles, twice as compared to Q1 FY22. Electric vehicle sales too scaled new peaks month on month to deliver over 440% growth in Q1 FY23 versus Q1 FY22.

During the quarter, we presented two new, future oriented, sustainable mobility concepts 'Curvv' and 'AVINYA' that will introduce India to new vehicle typographies and experiences. While the 'Curvv', will be launched first as an EV and thereafter with internal combustion engine, 'AVINYA' is our vision of a pure electric vehicle that offers unparalleled roominess and comfort; delivers wellness with a premium experience; and comes packed with new age technology. We also launched the Nexon EV Max in Q1 FY23 and are seeing a robust demand for this extension of India's best-selling EV.

Going forward, we expect the supply side, including that of critical electronic components to progressively improve. We continue to monitor the evolving demand and supply situation and will stay nimble to take necessary actions swiftly.

Free cash flow (automotive) in the quarter, was negative at Rs 9.8K crore (as compared to negative Rs 18.2K crore in Q1 FY22), primarily due to working capital impact of Rs 8.9K crore.

Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.

Shares of Tata Motors rose 0.66% at Rs 443.95 on the BSE.

Powered by Capital Market - Live News

Also Read

First Published: Jul 27 2022 | 5:17 PM IST

Next Story