Tata Motors on July 27 said its consolidated net loss for the quarter ended June 2022 came in at Rs 5,006.60 crore, widening from a loss of Rs 4,450.92 crore in the same quarter last year. A poll of analysts by CNBC-TV18 had estimated losses at Rs 1,299 crore.
Total revenue from operations, however, stood at Rs 71,934.66 crore, up 8.32 percent from Rs 66,406.45 crore in the year-ago quarter.
The EBITDA margin was at 7.4 percent for the quarter, down 90 basis points year-on-year (YoY), while the Ebit margin increased 60 basis points to -0.7 percent. One basis point is one-hundredth of a percentage point.
"We expect demand to remain strong despite worries on inflation and geo-political risks, while the supply situation is expected to improve further," the company said of its outlook.
"Cooling commodity prices are expected to aid improvement in underlying margins. We aim to deliver strong improvements in Ebit and free cash flows from Q2 onwards to get to near net auto debt free by FY24."
The company said its finance costs increased by Rs 217 crore to Rs 2,421 crore during Q1FY23 due to higher gross borrowings. Its net auto debt stands at Rs 60,700 crore, rising from Rs 48,700 crore at the end of FY22. Free cash flow (automotive) in the quarter was negative at Rs 9,800 crore, primarily due to the working capital impact of Rs 8,900 crore, the company said.
JLR disappoints
Jaguar Land Rover (JLR), Tata Motor's biggest subsidiary, said it sold 78,825 vehicles in the quarter, broadly flat compared with Q4FY22 and down 37 percent from the year-ago period.
JLR revenue for the quarter stood at £4.4 billion, down 11.3 percent YoY and 7.6 percent from Q4 FY22. The loss before tax in the quarter
was £524 million.
The EBIT margin for the UK-based luxury carmaker was minus 4.4 percent, falling 350 basis points reflecting the lower volumes and an unfavourable mix. Free cash flow was negative in the quarter at minus £769 million.
The company said the JLR business got 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.
CV business
Commercial vehicle (CV) revenue came in at Rs 16,300 crore, up 107.2 percent YoY. The Ebitda margin was at 5.5 percent, rising 430 basis points and the EBIT Ebit margin was at 2.8 percent, registering a growth of 690 basis points.
The company said its CV business witnessed strong volume growth as compared to Q1 FY22, which was a Covid-hit quarter.
"The growth in Q1 FY23 has been broad-based across regions and segments. For India business, domestic wholesales were at 95,895 vehicles ( up 124 percent YoY). The margin improvement was aided by higher volumes, realizations, and stable commodity prices," it said.
PV business
The company said the passenger vehicle (PV) business continued its strong momentum with revenue at Rs 11,600 crore, up 122.5 percent. The EBITA margins came in at 6.1 percent, growing by 200 basis points, while the EBIT margin stood at 0.9 percent, rising 750 basis points.
The segment's wholesales during the quarter were at 1,30,351 vehicles, up 101.7 percent from Q1 FY22.
"Demand for passenger vehicles continued to stay strong in Q1 FY23 even as the supply side remained moderately impacted. The SUV portfolio contributed 68 percent of Q1FY23 sales. The margin improvement was led by strong volumes, improved mix, and impact of higher operating leverage," said Tata Motors.
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