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%.
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.
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.
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.
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Research Analyst: Bavadharini KS