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The automobile arm of Tata Group, Tata Motors, published its Q2FY23 results where the company reported a significant decline in its net losses, but the figure was still higher than the estimates of D-Street.
Tata Motors had a consolidated revenue of Rs 79,611 crores during the quarter, up 29.7% YoY. The three major segments of the company are Jaguar Land Rover, Tata CV, and Tata PV.
Tata PV
The passenger vehicles business generated revenues of Rs 12,500 crores, up 71% YoY, as the company saw robust demand due to the festive season. Its new Tiago EV had a blockbuster debut with over 10,000 bookings. Stronger volumes, better mixes, and greater realizations helped improve margins as the company expects demand for PVs to stay strong.
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Tata CV
The commercial vehicles business reported revenues of Rs 16,500 crores, growing 35.5% YoY as domestic sales grew 19% during the quarter which was led by stronger sales of MHCVs and a robust recovery in passenger carriers' demand. Moreover, the company also won contracts from various STUs for over 3,600 E-buses. The increased infrastructure activity, demand for last-mile mobility, and strong recovery in the bus segment are expected to drive up demand for CVs.
JLR
The subsidiary reported revenues of £5.3 billion, up 36% YoY. It had a positive EBIT margin of 1% and near-breakeven cash flow. Losses narrowed down to £(173) million. Supply improved as its order book stood at 205,000 units.
Thierry Bolloré, Jaguar Land Rover’s CEO, 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.”
EBITDA of Tata Motors came in at Rs 7,700 crores as the EBITDA margins improved by 130 bps to 9.7%. Net loss for the quarter ended in September 2022 saw a substantial decline as it came in at Rs 945 crores as compared to Rs 4,441.57 crores reported in the corresponding quarter last year or Rs 5,006.60 crores reported in the quarter ended in June 2022.
The stock closed at Rs 423.50 per share on Friday.
Article by Aman Agarwal.
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