Tata Motors Q4 Results Update

On 12th May 2022, Tata Motors announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- The consolidated revenue of Tata Motors for the quarter was reported at Rs.78439 Crores with a decline of 11.5% YoY compared to Rs.88628 Crores in Q4FY21

- The consolidated EBITDA for the quarter was reported at Rs.8283 Crores saw a decline of 38.07% YoY compared to Rs.13374 Crores in Q4FY21

FY2022:

- The consolidated revenue of Tata Motors for FY2022 was reported at Rs.278454 Crores with a growth of 11.5% YoY compared to Rs.249795 Crores in FY2021.

- The consolidated EBITDA for FY2022 was reported at Rs.24720 Crores saw a decline of 23.44% YoY compared to Rs.32287 Crores in FY2021

Jaguar Land Rover (JLR):

- Revenue for JLR was at £4.8 billion in Q4FY22, up by 1% from Q3FY22, reflecting the higher wholesales offset partially by the impact of the runout of the previous generation Range Rover, with the New Range Rover still ramping up.

- The EBIT margin in the quarter was 2.0% with profit before tax about breakeven (£ 9 million) before a £ (43) million exceptional charge for its business in Russia.

- Free Cashflow improved to £340 million, up from £164 million in Q3FY22.

Tata Commercial Vehicles (Tata CV):

- Tata's CV business continued to show strong sequential recovery led by the MHCV segment.

- The business clocked its highest quarterly revenues since Q4FY19 and grew market shares in all segments.

- Despite lower margins due to commodity inflation, the impact was lower on PBT of Rs.607 Crores in Q4 due to operating leverage from higher revenues.

Tata Passenger Vehicles (Tata PV):

- Tata PV business delivered a comprehensive turnaround in Q4FY22 with the highest quarterly revenues of Rs.10.5 K Crore with a growth of 62%, positive EBIT of 1.2%, and positive free cash flows.

- EV volumes rose to 9.1K units in Q4 and PV market share improved to 13.4% with a growth of 440bps.

- Robust demand for the “New Forever” range and agile supply actions led to this strong performance

Other Highlights:

- Finance costs increased by Rs.1,215 Crore to Rs.9,312 Crore during FY2022 due to higher gross borrowings.

- For the year, net loss from joint ventures and associates amounted to Rs.74 Crore compared with a loss of Rs.379 Crore in FY21. Other income (excluding grants) was Rs.929 Crore in the current year versus Rs.725 Crore in the prior year

- Free cash flow (automotive) in the year, was negative at Rs.9.5K Crore as compared to a positive Rs.5.3K Crore in FY21, primarily due to a working capital impact of Rs.9.6K Crore. The business showed strong sequential recovery with positive free cash flow (automotive) of Rs.11.9K Crore in H2FY22.

Management Outlook:

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. Tata Motors expects performance to improve through the year as the China COVID and semiconductor supplies improve and aims to deliver strong EBIT improvement and free cash flows in FY23 to get to near net auto debt-free by FY2024.