Tata Motors Q1 Results: Loss Widens On Supply Shortages, Cost Woes

Tata Motors Ltd. posted loss for the sixth straight quarter, dragged by supply shortages, high material costs and a fall in sales of Jaguar Land Rover.

The company posted a loss of Rs 5,007 crore in the quarter ended June compared with a loss of Rs 1,032.84 crore in the preceding three months and a loss of Rs 4,451 crore a year ago, according to its exchange filing.

A consensus of analyst estimates compiled by Bloomberg had estimated a loss of Rs 1,039.6 crore.

Tata Motors Q1 FY23 Highlights (YoY):

• Revenue rose 8.7% to Rs 71,227.8 crore, against the Rs 71,509.7 crore forecast.

• Earnings before interest, tax, depreciation and amortisation fell 3.4% to Rs 5,323 crore, compared with the projected Rs 6,608.5 crore.

• Margin stood at 7.4% against 8.3% a year ago and 9.2% estimated.

The Tata Group company dispatched 110% more vehicles in the first quarter compared to a year ago, aided by a low base. Sequentially, however, the dispatches fell 3%.

Domestic passenger vehicle sales rose 6% over the preceding three months, while commercial vehicle sales declined 16%. Sales doubled in both the categories compared to the previous year.

JLR—that contributed nearly 61% to Tata Motors' overall sales in Q1—saw its revenue fall 7.6% sequentially and 11.3% year-on-year to £4.4 billion in the reported quarter due to chip shortages and a slower-than-expected production ramp-up of the New Range Rover and New Range Rover Sport, the company said. The luxury arm's dispatches declined 37% over the year earlier to 78,825 during the period.

Shares of Tata Motors closed 0.6% higher before the results were announced, compared with a 1% rise in the benchmark Nifty 50.