Tata motors — Check out latest earning report of automaker in 10 points

May 13, 2022

By: Bhakti Makwana

A surprise for Tata Motors investors

The Tata Group company suddenly narrowed its losses in the latest March quarter and surprised its investors.

Credit: BCCL

A surprise for Tata Motors investors

The Tata Group company suddenly narrowed its losses in the latest March quarter and surprised its investors.

Credit: BCCL

Losses came down by 86 percent

Losses at Tata Motors were cut down to ₹1,033 crore in January to March as compared to ₹7,605 crore during the same quarter last year.

Credit: BCCL

Automaker’s revenue fell by 11.4 percent in Jan-Mar

Its revenue dropped 11.4 percent to ₹78,439 crore during March quarter as against ₹88,627 crore last year due to lower sales in British subsidiary Jaguar Land Rover.

Credit: BCCL

Investors’ excitement reflected in the stock

Its shares surged nearly 10 percent to ₹408 per share as investors cheered its performance though losses still persisted on account of semiconductor shortage and inflation headwinds.

Credit: BCCL

Tata Motors India business remains robust

Its Indian passenger vehicles business reported highest quarterly and annual sales since inception, with revenues jumping 62 percent year-on-year, due to strong demand.

Credit: BCCL

Subsidiary Jaguar Land Rover still in the woods

The sales of its international luxury brand JLR dipped 27 percent due to the semiconductor chip shortage.

Credit: BCCL

Auto major expects JLR sales volumes to suffer for some more time

The global semiconductor shortage will continue next fiscal year with gradual improvement, the company said. Covid lockdowns in China as well as the new Range Rover Sport model changeover are expected to limit volume improvements next quarter.

Credit: BCCL

Russia-Ukraine war has a marginal impact

JLR said its sales to Russia halted in March and “remain paused". But sales in Russia and Ukraine historically account for only 2.5 percent of its global sales.

Credit: BCCL

Company expects strong demand and aims to become debt free by FY24

“We expect performance to improve through the year as the China COVID and semiconductor supplies improve and aim to deliver strong EBIT improvement and free cash flows in FY23 to get to near net auto debt free by FY24,” said Tata Motors which believes that demand will remain strong despite geopolitical and inflation concerns.

Credit: BCCL

Analysts expect the company to turn profitable by March 2023

Morgan Stanley said last year that Tata Motor’s Indian business will post profits by the end of March 2023, after 8 years of losses.

Credit: Pixabay

Electric vehicles keep the momentum high

The company sold 19,105 electric vehicles in FY22 while acquiring a market share of 87 percent in FY22. It sold 9,094 units in March 2022.

Credit: BCCL

Former Twitter India head quits his latest metaverse edtech venture