New Delhi: Tata Motors Limited announced a combined net loss of Rs 944.61 crore for the quarter ended September 30 on November 9. (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.
A measure of business profit called the Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) margin increased in Q2FY23 by 130 basis points (bps) year over year to reach 9.7%.
The domestic commercial vehicles sector of the Indian carmaker saw a 19% increase in sales over Q2 FY22, driven by increased sales of medium and heavy commercial vehicles (MHCVs) and a solid rebound in demand for passenger carriers.
In the midst of high holiday demand and debottlenecking efforts, Tata’s passenger vehicle (PV) division maintained its strong momentum with wholesales at 142,755 units (+69% YearonYear and 10% QuarteronQuarter).
“Demand continues to remain strong, however, will remain a key monitorable in wake of global uncertainties. Improving chip supply and cooling commodity prices will aid revenue and margins recovery and hence aim to deliver strong improvements in EBIT (earnings before interest and tax) and free cash flows in H2 FY23,” Tata Motors stated in a filing to the BSE.
Tata Motors’ Jaguar Led Rover (JLR) revenue was £5.3 billion in Q2FY23, up 36% year on year from Q2FY22, indicating excellent model mix and pricing, with wholesale volumes (excluding China JV) of 75,307, up 17.6% year on year and 4.9% year on year, according to a BSE filing.
Tata Motors asserted that JLR is keeping an eye on forging long-term partnerships with chip suppliers, which is enhancing 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.