22 C
Friday, January 27, 2023

Business news, strategy, finance and corporate vision

Tata Motors Ltd made a net profit of Rs 2,957.71 crore in the quarter ended 31 December 2022, against a loss of Rs 1,516.14 crore in the corresponding period of the last fiscal year.

Revenue from operations stood at Rs 88,488.59 crore in the third quarter, up 22.5% year-on-year compared to Rs 72,229.29 crore in the same quarter of the previous fiscal year, according to its presentation at the stock Exchange.

Jaguar Land Rover (JLR) revenue rose to £6bn, up 28% year-on-year and 15%, reflecting sequentially better supplies, a strong mix of models and prices, the automaker says.

Tata Motors passenger vehicle revenue rose 37% yoy to around Rs 11.7 billion, reflecting higher volumes and realizations. EBITDA margins were 6.9% (up 370 bps) and EBIT margins were 1.5% (up 510 bps), driven by better volumes and mix, higher realizations, weakening raw materials and certain exceptions, says the document.

Wholesale passenger car sales grew 33% year-on-year, driven by strong demand for the Nexon, Nexon EV, Punch, Tiago and Tigor CNG, the automaker says. The company began deliveries of Tiago.ev in January 2023.

“Recorded wholesale sales of 131,297 units in the third quarter of fiscal year 23 resulted in the business comfortably crossing the hallmark milestone of 500,000 annual units to record 526,798 unit wholesale sales in the fiscal year 22. Electric vehicles also posted their highest sales in the third quarter of FY23 with 12,596 units (+116.2% vs. third quarter of FY22) and crossed the cumulative sales milestone of 50,000 units. Going forward, we remain attentive to the evolving supply and demand situation and will remain agile to take the necessary steps quickly while focusing on further improving profitability,” says Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles. Ltd and Tata Passenger Electric Mobility Limited.

“We remain cautiously optimistic about the demand situation despite global uncertainties. We will remain attentive to demand and our continued focus on profitable growth, improving semiconductor supplies and stable commodity prices will support revenue growth, margin improvement and positive cash delivery in the fourth quarter of fiscal year 23,” says the automaker.

JLR delivered on its plans and achieved positive free cash flow and profitability in the quarter as supplies improved, the company says. “The higher profitability reflects higher wholesale volumes with favorable mix, prices and currencies partially offset by higher inflation and supplier complaints largely related to limited volumes,” he adds.

Wholesale sales in China during the quarter were affected by lockdowns that caused dealer closures, followed by high staff absentee rates as Covid-19 restrictions were eased. “The situation is expected to recover in the fourth quarter with the opening of our dealerships and staff absence closer to normal levels in January,” the company says.

“JLR has returned to profit as chip shortages eased in the quarter and production and wholesale sales increased. These improved results are testament to the hard work and dedication of our people across the business who have delivered a further increase in production of our New Range Rover and Range Rover Sport models,” says Adrian Mardell, Jaguar Land Rover interim CEO. .

As for commercial vehicles, Tata Motors says the CV industry is poised to grow thanks to increased infrastructure activity, demand for last-mile mobility and a strong recovery in the bus segment. “Going forward, we expect good replacement demand, especially at MHCV in the fourth quarter of FY23, as we also keep a close watch on evolving geopolitical situations, inflation and interest rate risks both both in supply and in demand”, he says.

Revenue from Tata Motors’ commercial vehicle arm, Tata Commercial Vehicles, rose 22% to ₹16,900 crore.

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles