The auto major reported a consolidated net loss of Rs 944.61 crore in Q2 FY23 as against a net loss of Rs 4,441.57 crore in Q2 FY22.
Revenue from operations increased 29.7% YoY to Rs 79,611.37 crore during the quarter ended 30 September 2022.EBITDA grew 50% YoY to Rs 7,738 crore in Q2 FY23. EBITDA margin improved to 9.7% in Q2 FY23 as against 8.4% in Q2 FY22.
The company recorded a pre-tax loss of Rs 1,461.15 crore in Q2 FY23 as compared with a pre-tax loss of Rs 3,471.55 crore in Q2 FY22.
JLR reported net loss of 98 million pounds in Q2 FY23 as against a net loss of 381 million pounds in Q2 FY22. Revenue jumped 35.9% YoY to 5,260 million pounds in Q2 FY23, reflecting a strong model mix.
The loss before tax in the quarter was 173 million pounds as against 302 million pounds posted in the corresponding quarter last year.
Wholesales volumes (excluding China JV) in Q2 stood at 75,307, up 17.6% YoY and 4.9% QoQ. The wholesale increase was lower than planned, primarily due to a lower-than-expected supply of specialised chips from one supplier which could not be readily re-sourced in the quarter.
Jaguar Land Rover said that it continues to focus on signing long term partnership agreements with chip suppliers which is improving visibility of future chip supply. Production and sales volumes are expected to improve with positive profit margins and cashflow expected in the second half of FY23 and free cashflow is expected to be near breakeven for the full financial year.
Thierry Bollor Jaguar Land Rover's chief executive officer, said, "We delivered a stronger financial performance in the second quarter as production of our new Range Rover and Range Rover Sport ramped up, improving revenue, margins and cash flow, despite continuing semiconductor constraints. Demand for our most profitable and desired vehicles remains strong and we expect to continue to improve our performance in the second half of the year, as new agreements with semiconductor partners take effect, enabling us to build and deliver more vehicles to our clients.
Tata Commercial Vehicles (Tata CV) recorded a profit before tax of Rs 0.3K crore in Q2 FY23 as compared to a pre-tax loss of Rs 0.1K crore in Q2 FY22. Revenue increased by 35.5% YoY to Rs 16.4K crore during the period under review. Tata Q2 CV domestic wholesales were at 93.6 K units (+19%), domestic retails were at 94.9K units in (+23%).
EBITDA margin improved by 180 basis points to 5%, aided by higher volumes, better realizations, although certain residual commodity inflation and adverse fx somewhat impacted margins.
Girish Wagh, Tata Motors, said, "In Q2 FY23, the CV industry witnessed consistency in demand across segments. Our sharp focus on retail resulted in retail sales outperforming wholesale by 1.3% during Q2 FY23.
Going forward, we continue to remain in the agile mode and are keeping a close watch on the evolving geopolitical, inflation and interest rate risks on both supply and demand."
Tata Passenger Vehicles (TATA PV) recorded 71% YoY growth in revenue to Rs 12.5K crore in the second quarter of FY23. EBITDA margin declined by 70 bps YoY to 5.4%. Strong volumes, richer mix and better realizations improved margins YoY. However, margins were affected because of residual commodity inflation and adverse forex.
In Q2 FY23, Tata PV global wholesales stood at 142,755 units (up 69% YoY) amid strong festive demand and debottlenecking actions. PV domestic wholesales at 142.3K units (+69%) and domestic retails at 133.7K units (+57%).
Shailesh Chandra, managing director, Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility said, "Demand for passenger vehicles remained strong in Q2 FY23 fuelled by improving supply of semiconductors, festive season and new launches. Tata Motors scaled new highs with sales of 142,325 units during the quarter, recording a growth of 70% versus Q2 FY22 with SUV sales contributing a rich 66% of the quarterly PV sales.
In electric vehicles, the company posted record-making sales of 11,522 units in Q2 FY23, registering a growth of 326% versus Q2 FY22. The recent festive season (Navratri to Dhanteras) saw 43% growth in retail sales over the previous year's festive season sales.
Going forward, we remain vigilant about the evolving demand and supply situation and will stay nimble to take necessary actions swiftly whilst focusing on improving profitability further.
On the outlook front, the auto major said, "Demand continues to remain strong, however will remain a key monitorable in wake of global uncertainties. Improving chip supply and cooling commodity prices will aid revenue and margins recovery and hence aim to deliver strong improvements in EBIT and free cash flows in H2 FY23.
Consolidated free cash flow (automotive) in the quarter, was positive at Rs 1K crore as compared to negative Rs 3.2K crore in Q2 FY22, despite working capital being adverse by Rs 1.4 K 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 declined 0.44% to end at Rs 433 on the BSE.
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