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Tata Motors Q3 Results 2022

24 May 2022

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.

Hits 

  • India’s third-largest carmaker overall dispatched 17% more vehicles QoQ in the domestic market
  • Losses have narrowed in Q3 FY22
  • EV sales witnessed a peak, selling nearly 5600 units. 
  • Semiconductor shortage has slowly started to ease. This may single handedly change the fortunes of the company
  • Domestic car sales have risen over 30% in the past three months! 

Misses

  • Company posted a net loss of Rs. 1,516 crores for its Q3 
  • Revenue fell 4% YoY to Rs 72,229.29 crores, against the ~Rs 75,000 crores
  • EBITDA was down by 15% YoY to Rs 7,078.02 crore. TML posted negative q.7% EBIT.
  • Jaguar Land Rover sales declined nearly ~38% YoY. 

What the management says

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

Other news

  • Tata Motors extends partnership as title sponsor for Tata Open Maharashtra for the fourth consecutive year. 
  • Tata Motors remains committed to supporting local communities fight COVID-19
  • The company launched its much coveted New Forever range of passenger vehicles in Bhutan 
  • It introduced advanced CNG technology in the Tiago and Tigor
  • Tata motors is an auto giant sitting on a market cap of Rs.1,85,168 crores. ROE and ROCE have been recorded at -22.9% and 5.82%, respectively. (As of January 31, 2022).
  • The stock’s CAGR for a year has been 97%! (As of January 31, 2022).

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