Tata Motors Q4 Results: Loss Narrows, Revenue Falls 11%

Tata Motors Ltd. posted loss for the fifth straight quarter as supply shortages and rising input costs hurt production.

The automaker’s loss stood at Rs 1,033 crore in the quarter ended March compared with a loss of Rs 1,516.14 crore in the preceding three months and a loss of Rs 7,605 crore a year ago, according to its exchange filing.

A consensus of analyst estimates compiled by Bloomberg, however, had estimated a profit at Rs 287 crore.

Tata Motors Q4 FY22 Highlights

• Revenue fell 11% year-on-year to Rs 78,439 crore, against the Rs 80,928-crore forecast.

• Earnings before interest, tax, depreciation and amortisation improved 23% sequentially, but was down 32% year-on-year to Rs 8,726 crore. That compares with the estimated Rs 8,553 crore.

• Margin stood at 10.6% against 9.8% in Q3 and 14.4% a year ago.

India’s third-largest carmaker overall dispatched 23% more vehicles sequentially at 2.3 lakh units in the January-March period in the domestic market. The sales rose 28% over a year earlier on a low base.

Domestic car sales rose 24% over the preceding three months and 47% year-on-year. Retail sales of Jaguar Land Rover—which contributes 70% to Tata Motors’ overall revenue—declined 36% sequentially and 1.4% over a year earlier to 79,008 units.

Tata motors in the statement said the demand remains strong despite geopolitics and inflation concerns. “The supply situation is gradually improving, whereas commodity inflation is likely to remain at elevated levels.”

The business, it said, clocked its highest quarterly revenue since Q4 FY18 and its market share inched up in all the four segments, with the passenger segment owning up to 13.4%.

Shares of Tata Motors closed 4.19% lower before the results were announced compared with a 2.22% decline in the benchmark Nifty 50.