Tata Motors announces results for Q2FY22 reports a net loss of ₹4,441.6 crores

Tata Motors expect the global shortage of semiconductors and commodity inflation to continue affecting its operations for the foreseeable future but affirmed that the company is endeavouring to manage its impact. 

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Automotive manufacturer Tata Motors announced on Monday, November 1 its performance results in the second quarter of the current fiscal year. The carmaker posted a combined net loss of Rs 4,441.6 for the quarter ended September 30, after posting a sequential loss of Rs 4,451 crore in the Q1FY22. In comparison, Tata Motors had reported consolidated net losses of Rs 314 crore in the Q2FY21. 

Moreover, the manufacturer posted a 14 percent year-on-year increase in consolidated revenue from operations at Rs 61,378 crore in the quarter under the review, sharply surpassing the revenue forecast of analysts. The company had reported a revenue of Rs 53,530 crore in the July-September quarter last year. 

However, the company’s operational performance suffered in the second quarter as the consolidated operating margin contracted 210 base points year-on-year to 8.4 percent, owing to input cost inflations. Notwithstanding cost headwinds, Tata Motors India reported a 91 percent on-year rise in revenues and a 130 bps on-year improvement in EBITDA margins to 3.9 percent.

Tata Motors highlighted that its India operations improved in the July-September quarter during the current fiscal year as compared with the corresponding quarter last year, but cited supply chain disruption and commodity inflation as factors that impacted operating margins. 

Tata Motors expect the global shortage of semiconductors and commodity inflation to continue affecting its operations for the foreseeable future but affirmed that the company is endeavouring to manage its impact. “The performance is expected to improve gradually starting in H2 as both the supply chain and the pandemic situation improves,” Tata Motors said.

Tata Motor’s subsidy Jaguar Land Rover also suffered due to the shortage of semiconductors globally as sales plunged 11.1 percent on-year. For the second quarter, the luxury vehicle arm of Tata Motors reported a revenue of 3.9 billion GBP, with a pre-tax loss of 302 million GBP. 

JLR’s wholesales declined 12.8 percent year-on-year, standing at 64,032 vehicles while its consolidated retail sales were 92,710, reporting a decline of 18.4 percent YoY. JLR’s EBITDA margin in the quarter also contracted 380 basis points on-year to 7.3 percent while its EBIT margin declined 500 basis points to -4.7 percent. Shares of Tata Motors closed 0.6 percent higher at Rs. 486.4 on the National Stock Exchange following the Q2FY22 results announcement.

 

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