Tata Motors Reports Consolidated Net Loss Of Rs. 1,032 Crore In Q4 FY2022

Tata Motors has announced its earnings for the Q4 FY2022. The carmaker has reported a net loss of Rs. 1,032 crore in the Q4 of FY2022 as compared to a consolidated net loss Rs. 7,605 crore it reported in the same quarter a year ago. Tata Motors reported in a regulatory filing. The company has also reported a sales revenue to Rs. 78,439 crore witnessing a slump of 11.5 per cent. Experts have expected the company to report a net profit of over Rs. 12 crore in the last quarter, while revenues were estimated to cross the Rs. 80,000 crore mark.

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Jaguar Land Rover has been facing supply issues due to the ongoing semiconductor crisis.

The drop in consolidated earnings is primarily attributed to the weak performance of its Jaguar Land Rover (JLR) business that reported a 27.1 per cent YoY decline in revenues. The company said that the JLR business took a severe hit from the ongoing semiconductor chip shortage, causing delays in production and in-turn deliveries. The British-origin brand witnessed major disruptions in the European and Chinese markets.

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Tata Motors' operating margin in CV business has narrowed.

On a standalone basis, the automaker reported a net profit of Rs. 413.35 crore in Q4 FY2022 when compared to a net-profit of Rs. 1,645.68 crore in the Q4 of 2020-21, a drop of 74.88 per cent in net profit. Total sales revenue on standalone basis stood at Rs. 17,338.27 crore in the last quarter as compared to Rs 13,480.42 crore in the corresponding quarter last year. The operating performance of the CV business was impacted by higher fuel and commodity costs for the company. And the operating margin of the CV business went down 2.9 per cent to 5.9 percent. That said, price hikes in the passenger vehicle business helped that vertical to expand its operating margin by 1.9 per cent to 6.9 percent.