Net Loss Narrows To Rs 1,033 Crore; Revenue At Rs 78,439 Crore

Homegrown auto major Tata Motors on Thursday reported a narrowing of its consolidated net loss to Rs 1,032.8 crore during the March 2022 quarter, compared with a loss of Rs 7,605 crore in the corresponding quarter last year. The company’s total revenue from operations during January-March 2022 declined 11.49 per cent to Rs 78,439.06 crore, compared with Rs 88,627.90 crore.

Its total income during the fourth quarter ended March 31, 2022, fell 11.17 per cent to Rs 79,341.61 crore, against Rs 89,319.34 crore a year ago.

The company in a statement said, “The demand remains strong despite geopolitical and inflation concerns. The supply situation is gradually improving, whereas commodity inflation is likely to remain at elevated levels. We expect performance to improve through the year as the China COVID-19 and semiconductor supplies improve and aim to deliver strong EBIT (earnings before interest and tax) improvement and free cash flows in FY 23 to get to near net auto debt-free by FY 2024.”

Jaguar Land Rover’s (JLR) revenue was £4.8 billion in the fourth quarter, which is 27 per cent lower as compared to last year, hit by the runout of the previous generation Range Rover.

Tata Motors’ commercial vehicle business continued to show strong sequential recovery led by the medium and heavy commercial vehicle (M&HCV) segment. “The business clocked its highest quarterly revenues since Q4FY19 and grew market shares in all segments. Despite lower margins due to commodity inflation, impact was lower on PBT (profit before tax) of Rs 607 crore in Q4 due to operating leverage from higher revenues.”

Its passenger vehicle segment delivered a comprehensive turnaround in Q4 FY22 with the highest quarterly revenues of Rs 10,500 crore (a jump of 62 per cent), positive EBIT 1.2 per cent and positive free cash flows. “EV volumes rose to 9,100 units in Q4 and PV market share improved to 13.4 per cent (up 440 bps). Robust demand for ‘New Forever’ range and agile supply actions led to this strong performance.”

Tata Motors Executive Director Girish Wagh said the Indian commercial vehicles sector, deeply impacted for two successive years, showed promising signs of growth in FY22 supported by a steady recovery in the economy, rising industrial activity and reopening of markets.

“At Tata Motors, the early adoption of a holistic ‘Business Agility Plan’ enabled us to protect and serve the interests of our customers, dealers and suppliers as well as smartly manage supply related challenges including the global shortage of critical electronic parts,” he added.

Wagh said the improvement in consumer sentiment, buoyancy in e-business, firming freight rates, reopening of schools and offices and higher infrastructure spends in road construction and mining helped regenerate demand.

The company had posted a consolidated net loss of Rs 1,451.05 crore in the third quarter ended December 31, 2021. Its consolidated revenue from operations had stood at Rs 72,229.29 crore in the third quarter.

Shares of Tata Motors on Thursday declined 4.07 per cent to close at Rs 372.10 crore apiece on the BSE.

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