Tata Motors posted its results for the quarter ending December on January 31, 2022. The company reported a net loss of Rs. 1,516 crores, narrowing from losses of the September quarter which stood at Rs. 4,441 crores. This is, however, wider than the loss expected by many experts according to media reports. The company attributed the loss to supply shortages and rising input costs, even though demand rose.
The revenue from operations for Tata Motors was recorded at Rs. 72,229 crore, down 4% year on year (YoY) from ~Rs. 75,000 crores. But on a quarter on quarter (QoQ) basis, the revenue grew by 17%, from Rs. 61,378 crores. EBITDA came down by ~15.6 % YoY at Rs. 7,078 crores from Rs. 8,206 crores.
Tata Motors published negative EBIT of 1.7% and pre-tax loss (before exceptional items) of Rs. 800 crores in the third quarter.
EV sales witnessed was at 5,592 units for the quarter, one of the highest ever for the company. JLR (Jaguar Land Rover) sales were recorded at 80,126 vehicles, down 37.6% YoY.
The company stated that the chip supply situation is gradually easing with production volumes of 72,184 units, up 41% YoY and wholesales of 69,182 units up 8% QoQ. The company automaker expects that demand shall remain strong despite Omicron spread but inflation might be a cause of worry, according to the company statement.
Tata motors in a filing stated that the semiconductor supply situation is improving gradually whilst inflation worries persist.
It added that free cash flow was positive at £164 million for the quarter under review, demonstrating the progress JLR made in reducing the breakeven point in the business through mix optimisation and cost efficiencies.
JLR CEO, Thierry Bolloré, stated in the press that while semiconductor supplies have continued to constrain sales this quarter, they continue to see very strong demand for their products underlining the desirability of the vehicles. The global order book is at record levels and has grown an incredible 30,000 units for the New Range Rover before deliveries even start this quarter. They shall continue to execute the ‘Reimagine Strategy’ to realise the full potential of the business and create the next generation of the most desirable luxury vehicles for the most discerning of customers
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