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Tata Motors Q4 FY22 Results

12 May 2022
3 minutes

Auto giant Tata Motors posted its quarterly results for Q4 FY22 on May 12, 2022. 

The company’s net loss attributable to the shareholders of the company narrowed to Rs 1,032 crore, down by nearly 32% QoQ (Quarter on Quarter) from a net loss of Rs 1,516 crore in the previous quarter. On a YoY (Year on Year) basis, the net loss attributable to the shareholders of the company is also down 86.4%. That is, from a loss of Rs 7,605 crore in Q4FY21 to a loss of Rs 1,032 crore in Q4FY22. 

Tata Motors’ revenue from operations is up 8.5% QoQ to Rs 78,439 crore, while the same is down by 11.4% YoY from Rs 88,627 crore.

The revenue from Tata Motors’ Jaguar and Land Rover subsidiary came in at £4.8 billion, down 27.1%. Commercial Vehicles segment revenue came in at Rs 18,500 crore, up 29.3%. And Tata Motors’ Passenger Vehicles segment revenue came in at Rs 10,500 crore, up 62.0%.

More about Tata Motors’ Q4 FY22 

The company’s finance costs increased from Rs 1, 215 crore to Rs 9,312 crore during FY22 due to higher borrowings. 

Tata Motors’ Electric Vehicle (EV) business has grown 3.2X in FY22. The company is also playing an important role in expanding the EV charging infrastructure in India.

Highlights

  • Revenue from operations up 8.5% QoQ to Rs 78,439 crore in the quarter 
  • Other income up at Rs 902 crore from Rs 702 crore in the previous quarter and Rs 691 crore in the year-ago period
  • Strong demand for New Range Rover helps order book to a new record at more than 168,000 units (New Range Rover 46, 000 units and Defender 41,000 units), up 13,000 units in Q4

Misses

  • The company’s net loss attributable to the shareholders of the company increased by 86.4% YoY to a loss of Rs 1,032 crore from a loss of Rs 7,605 crore in the year-ago period
  • Sales constrained by semiconductor shortage

Segment-wise revenue

  • Commercial Vehicle: Revenue up 29.2% YoY to Rs 18,528 crore 
  • Passenger Vehicle (non-Jaguar & Land Rover): Revenue up 62% YoY to Rs 10,491 crore 
  • Corporate/Unallocable: Revenue up 25% YoY to Rs 184 crore 
  • Vehicle Financing: Revenue down 11.7% YoY to Rs 1,085 crore 
  • Jaguar and Land Rover: Revenue down 27.3% YoY to Rs 48,022 crore 
  • Others: Revenue up 37.4% YoY to Rs 987 crore 

What the Management says

Like other players in the auto sector, Tata Motors too has been reeling under the chip shortage. This the company says is expected to run into 2022 with gradual improvement. Other supply chain constraints along with covid lockdowns in China have hampered the business. Additionally, the Ukraine-Russia conflict and inflation have impacted the company’s sales overseas.

However, the company feels there is an opportunity to increase prices to match the consumer demand, thanks to the company’s growing product portfolio.

Management outlook

The demand remains strong despite geopolitical and inflation concerns. The supply situation is gradually improving, whereas commodity inflation is likely to remain at elevated levels. The management expects performance to improve through the year as the China COVID and semiconductor supplies improve and aims to deliver strong EBIT improvement and free cash flows in FY 23 to get to near net auto debt-free by FY 2024.

To read the RA disclaimer, please click here
Research Analyst: Bavadharini KS

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