The auto major's consolidated revenue jumped 29.7% in Q2 to Rs 79,611 crore which was in line with the Street expectations of Rs 79,644 crore. The company's EBITDA margin improved by 130 bps YoY in Q2 to 9.7%.
Tata Motors said the demand continues to remain strong but will remain a key monitorable in wake of global uncertainties. "Improving chip supply and cooling commodity prices will aid revenue and margins recovery and hence we aim to deliver strong improvements in EBIT and free cash flows in H2 FY23," it said in an exchange filing.
Tata Motors CV
The company's commercial vehicles business registered a 15% growth in sales over Q2 FY22. "For India business, domestic wholesales were at 93,651 vehicles (+19% YoY). However, exports were at 6,771 vehicles, lower by 22% affected by the financial crisis in a few export markets. Domestic retails grew at a higher rate as compared to wholesales (+23% YoY). The margin improvement was aided by higher volumes and realisations, although impacted by residual commodity inflation and forex," Tata Motors said.
The company's EBITDA margins improved 180 bps to 5% in the segment during the quarter. Focus will continue to remain on registration market share improvement with demand pull strategy, innovation intensity, restoring double-digit EBITDA margins and successfully delivering on new business models, the company said.
Tata Motors PV
The passenger vehicles segment recorded wholesales growth of 69% YoY and 10% QoQ amid strong festive demand and debottlenecking actions. EBIT margins improved by 200 bps YoY to 0.4% because of higher volumes, mix and improved realisations.
In the PV segment, Tata Motors said demand is likely to remain strong, although some moderation could be seen after the festive season.
"The company will continue to drive growth and enhance profitability and cash flows. In Electric Vehicles, the recent launch of the Tiago EV, has opened new vistas and is poised to drive the mass adoption of EVs across the country. We aim to complete the acquisition of the Ford plant at Sanand in the coming months. Despite a significant step-up in investments, the PV business is expected to remain self-sustaining whilst the EV business investments continue to be well funded," it said in a statement.
The company's market share in the domestic PV market strengthened further by 200 bps to 14.1% in H1 FY23 while the EBITDA margin dropped 70 bps to 5.4% in Q2.
JLR
Jaguar Land Rover's (JLR) revenue was up 36% year-on-year (YoY) at £5.3 billion in Q2, reflecting strong model mix and pricing with wholesale volumes (excluding China JV) of 75,307 up 17.6% YoY and 4.9% on the prior quarter.
Tata Motors said production and sales volumes are expected to improve with positive profit margins and cashflow expected in the second half of FY23 and free cashflow is expected to be near breakeven for the full financial year.
"The wholesale increase was lower than planned, primarily due to a lower-than-expected supply of specialised chips from one supplier which could not be readily re-sourced in the quarter. The production ramp up of New Range Rover and New Range Rover Sport improved with 13,537 units wholesaled in the quarter, up from 5,790 in Q1," the auto major said.
JLR CEO Thierry Bolloré said he expects to continue to improve the performance in the second half of the year, as new agreements with semiconductor partners take effect.
Tata Motors Q2 Results: Automaker posts higher-than-expected net loss of Rs 945 crore - Economic Times
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