Tata Motors Reports Consolidated Net Loss Of Rs. 945 Crore In Q2FY2023; Revenue Jumps 30%

The home-grown automaker, Tata Motors has released its financial results for the second quarter (Q2) of Financial Year 2022-23. In the quarter that ended on September 30, 2022, the company’s consolidated net loss narrowed down to Rs. 944.6 crore, compared to the net loss of Rs. 4,441.57 crore reported during the same July-September period of the FY2021-22 fiscal year. During Q2 FY2023, Tata Motors’ consolidated revenue stood at Rs. 79,611.37 crore, witnessing a growth of nearly 30 per cent compared to the Rs. 61,378.82 crore revenue earned in the same quarter a year ago. The company’s Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) margin, a metric of corporate profit, improved by 130 basis points (bps) YoY in Q2FY23 to 9.7 per cent. 

During Q2 FY2023, Tata Motors’ consolidated revenue stood at Rs. 79,611.37 crore, witnessing a growth of nearly 30 per cent.

The company’s luxury car brand, Jaguar Land Rover, reported a revenue of £5.3 billion (Rs. 43,365 crore) in Q2 FY23, up 36 per cent year-on-year from Q2 FY22.  The company’s wholesale volumes (excluding China JV) stood at 75,307 units, up 17.6 per cent year-on-year and 4.9 per cent on the prior quarter. The wholesale increase was lower than planned, primarily due to a lower-than-expected supply of specialised chips from one supplier which could not be readily re-sourced in the quarter. The production ramp up of New Range Rover and New Range Rover Sport improved with 13,537 units wholesaled in the quarter, up from 5,790 in Q1 and helped mitigate this.

Commenting on the company’s performance, Thierry Bolloré, Jaguar Land Rover’s Chief Executive Officer, said, “We delivered a stronger financial performance in the second quarter as production of our new Range Rover and Range Rover Sport ramped up, improving revenue, margins and cash flow, despite continuing semiconductor constraints. Demand for our most profitable and desired vehicles remains strong and we expect to continue to improve our performance in the second half of the year, as new agreements with semiconductor partners take effect, enabling us to build and deliver more vehicles to our clients.”

Also Read: Tata Motors’ Passenger Vehicle Sales Grow By 33%

Tata’s passenger vehicle business reported wholesales of 142,755 vehicles witnessing a year-on-year growth of 69 per cent.

As for domestic market, Tata’s passenger vehicle business reported wholesales of 142,755 vehicles witnessing a year-on-year growth of 69 per cent, amid strong festive demand and debottlenecking actions. At the same time, the company’s CV business registered a 15 per cent growth in sales over Q2 FY22. For India business, domestic wholesales saw 19 per cent growth at 93,651 vehicles, while exports stood at 6,771 vehicles, down 22 per cent, affected by financial crisis in few export markets. 

Sharing its outlook, Tata Motors said, “Demand continues to remain strong, however will remain a key monitorable in wake of global uncertainties. Improving chip supply and cooling commodity prices will aid revenue and margins recovery and hence aim to deliver strong improvements in EBIT and free cash flows in H2 FY23.”