Homegrown auto giant Tata Motors recorded a net loss of Rs 4,451 crore for April-June quarter, compared to the Rs 8,438 crore net loss during the same period last year. The Q1 FY22 financial results of Tata Motors were below market estimates of net loss of Rs 1,000 crore to Rs 1,300 crore.
However, in a positive sign for the company, Tata Motors' consolidated revenue rose 107.6 per cent on a year-on-year basis to Rs 66,406 crore. Among its subsidiaries, Jaguar Land Rover (JLR) saw 73.7 per cent rise in revenue to 4.96 billion pound sterling.
JLR's retail sales in the first quarter were up 68.1 per cent year-on-year at 1,24,537 vehicles on recovery from the impact of the pandemic.Tata Motors India's operations showed significant improvement as compared to Q1 a year ago, however, the second COVID wave in India, along with supply issues, slowed down the growth momentum as compared to Q4 FY21.
Tata Motors Ltd's revenue for the April-June quarter increased 343.1 per cent to 11,900 crore and pre-tax loss before exceptional items was at Rs 1,289 crore as against a loss of Rs 2,141 crore in Q1 FY21. The company said its profit before tax improved in Q1, mainly due to better volumes, improved product mix, offset by commodity inflation and fixed costs. The company's EBIT margin was at 6.2 per cent in the quarter.
"Though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control and ensure that Jaguar Land Rover is well-placed to respond to any further market developments," Thierry Bollore, chief executive officer of JLR, said.
The company said the business scenario continues to remain fluid. "Demand situation is likely to improve further despite pandemic uncertainty impacting the short term. However, there are significant challenges on the supply side including semi-conductor issues and runaway commodity inflation."
Sequentially, the improvement in overall performance is expected from second half of FY22, it said. The company has said demand remains strong for JLR and India passenger vehicles, while demand for commercial vehicles is showing gradual improvement.
As per Tata Motors, the business demonstrated strong resilience in the face of adversity and its fundamentals are strong. "We will remain agile to address these challenges and drive consistent, competitive and cash accretive growth over the medium to long term whilst deleveraging the business to near-zero automotive debt by FY24."
Tata Motors had reported a consolidated net loss of Rs 13,395 crore for the financial year ended March 31, 2021. The Indian auto major had posted a loss of Rs 11,975 crore in FY20. Meanwhile, shares of Tata Motors closed 0.95 per cent lower at Rs 292.75 on the National Stock Exchange on Monday.
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