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Tata Motors Q2 Results: Firm sees higher-than-expected net loss of 945 cr; revenue jumps 30%

Tata Group's logo displayed at Tata Motors Ltd dealership in Mumbai, India. (Bloomberg)Premium
Tata Group's logo displayed at Tata Motors Ltd dealership in Mumbai, India. (Bloomberg)

  • Tata Motors Q2 results: Jaguar Land Rover's (JLR) revenue was up 36% year-on-year at £5.3 billion in Q2, reflecting strong model mix and pricing with wholesale volumes (excluding China JV) of 75,307 up 17.6% YoY and 4.9% on the prior quarter

Automobile major Tata Motors on Wednesday reported a consolidated net loss of 944.61 crore for the second quarter ending September (Q2FY23). The company had posted a net loss of 4,441.57 crore in the year-ago period (Q2FY22) and 5,006.60 crore in the previous June quarter (Q1FY23), respectively.

The homegrown auto major's consolidated revenue jumped 29.7% to 79,611.37 crore as against 61,378.82 crore from the year-ago period.

Analysts estimated a revenue growth of anything between 6% and 12.6% on-quarter, and for losses to contract by nearly 87% or profits to grow marginally over the same period. Consolidated revenue was expected to be between 76,188 crore and 80,927 crore, and net losses to shrink to 775.5 crore or net profits to increase up to 324 crore.

The Mumbai-headquartered company's EBITDA margin improved by 130 bps YoY in Q2FY23 to 9.7%.

JLR revenue

JLR revenue was £5.3 billion in Q2FY23, up 36% YoY from Q2FY22, reflecting strong model mix and pricing with wholesale volumes (excluding China JV) of 75,307 up 17.6% YoY and 4.9% on the prior quarter, the company said in a filing.

Going ahead

JLR is continuing 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 Bolloré, 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," Bolloré added.

Meanwhile, Tata commercial vehicles business registered a 15% growth in sales over Q2 FY22. For India business, domestic wholesales were at 93,651 vehicles (+19% yoy). However, exports were at 6,771 vehicles, lower by 22% affected by financial crisis in few export markets.

The passenger vehicles segment recorded wholesales growth of 69% YoY and 10% QoQ amid strong festive demand and debottlenecking actions. EBIT margins improved by 200 bps YoY to 0.4% because of higher volumes, mix and improved realisations.

On Wednesday, the company's scrip closed 0.44% lower at 433.10 apiece on the NSE.

ABOUT THE AUTHOR

Meghna Sen

Meghna Sen is a deputy chief content producer at Livemint where she tracks companies, markets, news. She has 5+ years of experience with online and print publications. Email: meghna.sen@htdigital.in
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