Tata Motors Q2 Results: Loss Narrows On Improved JLR Margins
Tata Motors' total sales grew 42% year-on-year to 2.43 lakh units in the September quarter.
Tata Motors Ltd. reduced its net losses as its British subsidiary Jaguar Land Rover's margins improved.
The automaker's consolidated net loss narrowed to Rs 944.6 crore for the quarter ended September from Rs 4,438.5 crore last year, according to the exchange filing. That compares with the Rs 1,548 crore consensus estimate of analysts tracked by Bloomberg.
This is the seventh straight quarter that the company has reported losses.
Tata Motors Q2 FY23 Highlights (YoY):
Revenue rose 30% to Rs 79,611.4 crore, against the Rs 73,082 crore forecast.
Ebitda rose 35% to Rs 5,572.3 crore, compared with an estimate of Rs 6,379 crore.
Ebitda margin stood at 7% against 6.7% a year ago. Analysts had projected it at 8.7%.
The company’s total sales grew 42% year-on-year to 2.43 lakh units in the September quarter.
The total commercial vehicle sales rose 16% to over 1 lakh units, while it sold 69% more passenger vehicles at 1.43 lakh units.
Wholesale dispatches of its British arm, JLR, registered 5% quarter-on-quarter growth to 75,307 units (excluding China JV), which was below the target of 90,000 units for the quarter.
The luxury carmaker's operating margin improved by 300 basis points to 10.3% in the quarter. The improved supply of semiconductors led to a higher scale of operations.
It contributed 62% to the company's overall revenue from operations in the quarter.
The company said the lower-than-planned improvement in dispatches was due to a shortage in the supply of specialised chips from one supplier.
The automaker said that while demand remains strong, it will remain a key monitorable amid global uncertainties. Improving chip supply and cooling commodity prices will aid revenue and margin recovery in second half of the current fiscal, it said.
For JLR, the company said it's signing long-term partnership agreements with chip suppliers to improve future chip supply.
"In Passenger Vehicles, demand is likely to remain strong, although we could witness some moderation post the festive season," the company said in the release.
Shares of Tata Motors closed 0.44% down before the results were announced, as against a 0.25% fall in the Nifty 50.