The auto major's consolidated net loss contracted to Rs 4,450.92 crore in Q1 June 2021 as compared to a net loss of Rs 8,437.99 crore in Q1 June 2020.
Total revenue from operations soared 107.63% to Rs 66,406.45 crore in Q1 FY22 from Rs 31,983.06 crore in Q1 FY21. EBITDA margins improved by 570 bps to 8.3% in Q1 FY22 over Q1 FY21.
The company reported a pre-tax loss of Rs 2,578.64 crore in Q1 FY22 as against a pre-tax loss of Rs 6,183.73 crore in Q1 FY21. The Q1 earnings was declared after trading hours today, 26 July 2021.
Finance costs increased by Rs 326 crore to Rs 2,203 crore during Q1 FY22 as compared to the prior year due to higher gross borrowings as compared to Q1 FY21.
Free cash flow (automotive) in the quarter was negative Rs 18,200 crore (as compared with negative Rs 19,400 crore in Q1 FY21) of which Rs 16,500 crore was due to working capital unwind.
JLR Retail sales in the first quarter stood at 1,24,537 vehicles, growing 68.1% Y-o-Y (year-on-year) as sales continued to recover from the impact of the pandemic. Sales were higher in all key regions including in the UK (up 186.9%), Europe (up 124.0%), Overseas (up 71.0%), North America (up 50.5%), and China (up 14.0%).
Revenue was 5.0 billion in the first quarter, jumping 73.7% Y-o-Y higher than Q1 in the prior year, reflecting a 72.6% year-on-year growth in wholesales to 84,442 vehicles. However, this was c. 30,000 units lower than planned due to semiconductor supply constraints.
The production constraint resulted in a pre-tax loss of 110 million with an EBIT margin of (0.9)% and a free cash outflow of 996 million. The cash outflow is after 571 million of investment spending and unfavorable working capital of c. 800 million related to the lower production. JLR had recorded a loss of 413 million and cash outflow of 1.6 billion at the peak of the pandemic in Q1 a year ago.
Thierry Bollor the Jaguar Land Rover chief executive officer, stated that: "We are pleased to see a continuing positive recovery from the pandemic, with year-on-year growth in all regions, demonstrating the appeal of Jaguar and Land Rover vehicles. Though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control and ensure that Jaguar Land Rover is well-placed to respond to any further market developments."
Tata Motors (TML) India operations showed significant improvement as compared to Q1 a year ago. However, the second COVID-19 wave in India along with the supply issues, slowed down the growth momentum as compared to Q4 FY21.
TML reported EBIT of (6.2) % and pre-tax loss of Rs 1300 crore for Q1 FY22. Passenger vehicle (PV) business continues its turnaround journey and has achieved yet another milestone of double-digit market share. EV business continues to grow rapidly and delivered 5x revenue growth and highest quarterly sales at 1,715 units.
In Q1 FY22, wholesales (including exports) climbed 351.4% to 1,14,170 units. The volumes across all segments significantly grew as compared to Q1 FY21. However, they were lower than Q4 FY21 due to the lockdowns imposed due to the second wave of pandemic.
Revenue for the quarter increased 343.1% to Rs 11,900 crore and pre-tax loss before exceptional was Rs 1,289 crore as compared to a loss of Rs 2,141 crore in Q1 FY21. PBT improvement was mainly due to better volumes, improved product mix, offset by commodity inflation and fixed costs. EBIT margin was (6.2) % in the quarter, rising 5510 bps. Free cash flow for the quarter stood at Rs 8,000 crore.
Girish Wagh, the executive director of Tata Motors, has said that: "The successful implementation of a comprehensive business agility plan enabled us to manage lockdowns effectively and also deliver competitive growth as markets reopened. In the near term, we remain focused on fulfilling customer demands while driving all levers of the business to mitigate the unprecedented commodity inflation."
In its outlook, the company said that demand would remain strong for JLR and India PV while commercial vehicle (CV) demand is showing gradual improvement. In this dynamic business environment, Tata Motors anticipates that semiconductor issues, commodity inflation and pandemic uncertainty will have an impact in the short term.
The company expects the performance to improve progressively from H2 as supply chain and pandemic situation improves. It will remain agile to address these challenges and drive consistent, competitive and cash accretive growth over the medium to long term whilst deleveraging the business to near zero automotive debt by FY24.
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 slipped 0.86% to close at Rs 293.10 on BSE. It traded in the range of Rs 291.05 and Rs 297 during the day.
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