Tata Motors Q1: Net revenue more than doubles, loss almost halves to Rs 4,451 crore

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Tata Motors on Monday reported a consolidated net loss of Rs 4,450.92 crore for the quarter ended June as against a net loss of Rs 8,437.99 crore in the year-ago quarter. At the same time, its net revenue more than doubled to Rs 66,406 crore as against Rs 31,983.06 crore in a year-ago quarter.

The top-line growth was primarily due to a low base in the year-ago quarter, led by lockdowns in local and global markets to contain the spread of the Covid-19 pandemic.

On the operational front, auto majors in EBITDA (earnings before interest tax depreciation and amortization) margins came in at 8.3% an improvement of 570 basis points.

JLR

Jaguar Land Rover reported a 73.7 per cent on-year rise in revenues to 4.97 billion pound sterling (£) with the company selling 124,537 vehicles, up 68.1% year-on-year as sales continued to recover from the impact of the pandemic. However, the shortage of semiconductor supplies constrained production resulting in a pre-tax loss of £110 million with an EBIT margin of (0.9%) and a free cash outflow of £996 million marking a significant improvement from the loss of £413 million and cash outflow of £1.6 billion at the peak of the pandemic a year ago.

“We are pleased to see a continuing positive recovery from the pandemic, with year-on-year growth in all regions, demonstrating the appeal of Jaguar and Land Rover vehicles. Though the current environment continues to remain challenging, we will continue to adapt and manage elements that are within our control and ensure that Jaguar Land Rover is well-placed to respond to any further market developments,” said CEO of Jaguar Land Rover Thierry Bolloré.

Domestic business

The local business of Tata Motors saw a massive improvement as it reported 343% year-on-year to Rs 11,904 crore largely due to a low base. The company sold 1,14,170 units up by 351.4%.

The Indian operations were even able to narrow the losses as pre-tax loss before exceptional was 1,289 crore (vs loss of 2,141 crore in Q1FY21). PBT improvement was mainly due to better volumes, improved product mix, offset by commodity inflation and fixed costs. EBIT margin was -6.2% in the quarter improving by 5510 basis points.

“The successful implementation of a comprehensive Business Agility plan enabled us to manage lockdowns effectively and also deliver competitive growth as markets reopened. In the near term, we remain focused on fulfilling customer demands while driving all levers of the business to mitigate the unprecedented commodity inflation,” said Girish Wagh, Executive Director of Tata Motors.

The demand situation is likely to improve further despite pandemic uncertainty impacting the short term. However, there are significant challenges on the supply side including semi-conductor issues and runaway commodity inflation, said Tata Motors.

Shares of Tata Motors ended 0.86% lower at Rs 293.10 on BSE.