scorecardresearch
Tata Motors Q4 results: Net loss narrows to Rs 1,033 cr

Tata Motors Q4 results: Net loss narrows to Rs 1,033 cr

Tata Motors' consolidated total revenue from operations declined nearly 11.4 per cent to Rs 78,439.06 crore versus Rs 88,627.90 crore from a year ago.

Tata Motors Q4 results Tata Motors Q4 results

India's largest automaker Tata Motors on Thursday reported narrowing of net loss to Rs 1,032.84 crore for the quarter ending 31 March, 2022. The firm had posted a net loss of Rs 7,605.40 crore a year earlier.

Sequentially, the automaker's loss narrowed from Rs 1,516.14 crore in the December quarter (Q3FY22).

Tata Motors' consolidated total revenue from operations declined nearly 11.4 per cent to Rs 78,439.06 crore versus Rs 88,627.90 crore from a year ago.

The company's earnings before interest, taxes, depreciation, and amortization or EBIDTA margin for the quarter came in at 11.2 per cent, down 320 basis points. EBIT margin at 3.2 per cent fell 410 basis points.

The automaker said that 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 COVID-19 and semiconductor supplies improve and aim to deliver strong EBIT improvement and free cash flows in FY23 to get to near net auto debt-free by FY2024."

Graphic credit: Mohsin Shaikh

Segment-wise Q4FY22 highlights:

Jaguar Land Rover (JLR): Revenue was £4.8 billion in Q4 FY22, up 1 per cent 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 per cent with profit before tax about breakeven (£ 9 million) before £ (43) million exceptional charge for our business in Russia. Free Cashflow improved to £340 million, up from £164 million in Q3.

Tata Commercial Vehicles (Tata CV): Tata CV business continued to show strong sequential recovery led by 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, impact was lower on profit before tax (PBT) of  Rs 607 crore in Q4 due to operating leverage from higher revenues.

Tata Passenger Vehicles (Tata PV): Tata PV business delivered a comprehensive turnaround in Q4 FY 22 with highest quarterly revenues of Rs 10.5K crore (+62 per cent), positive EBIT 1.2 per cent and positive free cash flows. EV volumes rose to 9.1K units in Q4 and PV market share improved to 13.4 per cent (+440bps). Robust demand for “New Forever” range and agile supply actions led to this strong performance. 

Shares of Tata Motors on Thursday closed 4.07 per cent lower at Rs 372.10 apiece on BSE.