Tata Motors Q1 Results FY2023, Net loss at Rs. 5006.6 crores

On 27th July 2022, Tata Motors announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The company’s revenue from operations stood at Rs. 71934.66 crores with a growth of 9.7% YoY 

- Loss before tax stood at Rs. 3468.05 crores with a drop of 34.49% YoY.

- The company reported its Net loss at Rs. 5006.6 crores with a yearly drop of 12.48%

- Finance costs increased by Rs. 217 crores to Rs. 2,421 crores during Q1 FY23 due to higher gross borrowings.

- For the quarter, net profit from joint ventures and associates amounted to Rs. 36 crores compared with a loss of Rs. 130 crores in Q1FY22. Other income (excluding grants) was Rs. 340 crores in Q1 FY23 versus Rs. 240 crores in Q1FY22

- The company’s free cash flow (automotive) in the quarter, was negative at Rs. 9800 crores as compared to a negative Rs. 18200 crore in Q1FY22, primarily due to a working capital impact of Rs. 8900 crores.

Business Highlights:

Jaguar Land Rover:

- Retail sales of JLR in Q1FY23 were 78,825 vehicles, broadly flat compared with Q4FY22 and down by 37% compared with Q1FY22.

- Revenue from JLR was £ 4.4 billion in Q1FY23, down by 7.6% from Q4FY22, impacted by supply challenges including semiconductor shortages, slower than expected ramp-up of the New Range Rover and New Range Rover Sport production, and China lockdowns. 

- The customer order book grew further to 200,000 vehicles. 

- The loss before tax in the quarter was £ 524 million before a £ 155 million favorable exceptional pension item. The loss primarily reflects the lower wholesale volumes with a weaker mix, as well as unfavorable inflation of £ (161) million and currency and commodity revaluation of £(236) million YoY.

Tata Commercial Vehicles:

- Tata CV business witnessed strong volume growth as compared to Q1FY22 (a Covid-impacted quarter). The growth in Q1FY23 has been broad-based across regions and segments. 

- For the India business, domestic wholesales were at 95,895 vehicles, up by 124% YoY. Exports were however at 5,218 vehicles, dropping by 22.6% due to the financial crisis in a few export markets. The margin improvement was aided by higher volumes, realizations, and stable commodity prices.

Tata Passenger Vehicles:

- Tata PV business continued its strong momentum with wholesales at 130,351 vehicles, up 101.7% YoY. 

- Demand for passenger vehicles continued to stay strong in Q1FY23 even as the supply side remained moderately impacted. 

- The SUV portfolio contributed 68% of Q1FY23 sales. The margin improvement was led by strong volumes, improved mix, and the impact of higher operating leverage.