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Tata Motors reported a net profit ₹5,407 crore for the quarter that ended in March. The company reported a loss of ₹1,302 crore during the same quarter last year.
The company reported an 82.8 per cent profit in the December quarter with ₹2,957 crore. The company also declared a dividend of ₹2 per share.
The total revenue of Tata Motors rose by 35 per cent year-on-year to ₹1,05,932 crore (₹78,439 crore) . The revenue grew by 19.7 per cent against the December quarter with ₹88,488 crore. The company also recorded its lowest debt in 15 years on its India business at ₹6,200 crore.
Tata Motors had a cash flow of ₹3,800 crore in Q4 for the India operations.
Also read: Vedanta Q4 net profit down 57% on lower realisation
“Passenger vehicle sales grew steeply in FY23 to set a new record for the Indian auto industry. Tata Motors recorded its third successive year of industry-beating growth registering its highest ever-annual domestic sales and achieving a robust 46 per cent sales growth over FY22. Tata Motors crossed the significant landmark of 50,000 annual sales in EVs, its highest-ever, to post a growth of 154 per cent over FY22. We successfully grew our leadership position by accelerating both EV adoption and the development of its enabling ecosystem. Going forward, we will continue to deliver on new product launches, debottleneck capacities and drive EV penetration further to deliver market-beating growth in coming years,” said Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Limited.
The company also recorded the highest profit in China over the last five years owing to high volumes.
EV business
The company’s EV penetration increased to 9 per cent with 15,000 units of electric vehicles during the March quarter. The company’s CNG penetration stood at 8 per cent during the quarter. The commercial vehicle business registered a 15 per cent year-on-year revenue growth despite the wholesales being down at 3 per cent.
The company plans to have ten electric vehicle cars by 2025 and is anticipating an uptick in EVs with Tiago.
JLR performance
JLR revenue was up by 49 per cent year-on-year at £7.1 billion. The net debt for JLR improved to £3.0 billion as of 31 March 2023 with cash of £3.8 billion and liquidity of £5.3 billion. The order book remained at 2,00,000 units with Range Rover, Range Rover Sport and Defender representing 76 per cent of the order book.
“JLR delivered a strong set of results for the fourth quarter. We increased production and delivered revenue, profit, free cash flow and wholesale growth as chip supply continued to improve. For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6 per cent and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3 billion. With the collective strength of our people, we will continue to deliver our ‘reimagine strategy’. Demand for our exceptional modern luxury vehicles remains strong and with a pipeline of ultra-desirable electrified models on the horizon,” said Adrian Mardell, Jaguar Land Rover’s Interim Chief Executive Officer
Entry segment pressure
“The entry vehicle segment is under pressure and it is likely to remain under pressure as the used vehicle segment is booming. The average price of cars is also going up. We will see an increase in the SUV penetration,” said PB Balaji, CFO, of Tata Motors.
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