On November 9, Tata Motors announced a consolidated net loss of Rs. 944.61 crore for the second quarter that ended in September (Q2FY23). In the same period last year, the domestic multinational vehicle manufacturing company reported a net loss of Rs. 4,441.57 crore (Q2FY22).
Consolidated income from operations for the Mumbai-based company increased 29.7% year over year, from Rs 61,378.82 crore to Rs 79,611.3 crore during the quarter under review. In Q2FY23, EBITDA margin increased by 130 bps YoY to 9.7%.
The domestic commercial vehicle division of the Indian carmaker had a 19% increase in sales over Q2 FY22, driven by increased sales of MHCVs and a solid rebound in demand for passenger carriers.
With wholesales at 142,755 vehicles (+69% yoy and 10% qoq), Tata PV business maintained its good progress amid high holiday demand and debottlenecking initiatives.
According to a report to the BSE, wholesale volumes (excluding the China JV) of 75,307 were up 17.6% YoY and 4.9% on the prior quarter, and Tata Motors’ JLR revenue was £5.3 billion during Q2FY23, up 36% YoY from Q2FY22.
According to Tata Motors, JLR is still concentrating on concluding long-term partnerships with chip suppliers, which is increasing visibility of future chip supply. According to the company, production and sales volumes are anticipated to increase, positive profit margins and cashflow are anticipated in the second half of FY23, and free cashflow is anticipated to be close to breakeven for the entire fiscal year.
Thierry Bolloré, Jaguar Land Rover’s Chief Executive Officer, stated, “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.”
Some analysts predicted that the company would experience significant topline growth, while others had doubts about its bottom line. Some of them predict a significant decrease in net losses quarter-over-quarter (QoQ), while others predict a slight increase in net profit.
Because of JLR’s poor performance, institutional research at HDFC Securities anticipated that Tata Motors will once again report a loss in Q2 on a consolidated basis. Similar to this, analysts at Kotak Institutional Equities predict a little increase in consolidated net earnings to Rs 317.9 crore.
