Tata Motors on Wednesday reported a net loss of ₹944 crore in Q2 FY23compared with a loss of ₹4,441 crore clocked during the year-ago quarter and ₹5,006-crore loss reported in Q1.
Revenue from operations grew 29.7 per cent to ₹79,611 crore (₹61,378 crore).
“Tata Motors scaled new highs with sales of 142,325 units during the quarter, recording a growth of 70 per cent versus Q2 FY22 with SUV sales contributing a rich 66 per cent of the quarterly PV sales. In electric vehicles, the company posted record-making sales of 11,522 units in Q2 FY23, registering a growth of 326 per cent versus Q2 FY22. The recent festival season saw 43 per cent growth in retail sales over the previous year’s festival season sales,” said Shailesh Chandra, MD of Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Limited.
JLR revenue was up 36 per cent y-o-y and 20 per cent q-o-q at £5.3 billion. The products have an order book of 2,05,000 units with its three most profitable models — the new Range Rover, new Range Rover Sport and Defender — which account for over 70 per cent of the order book.
“We delivered a stronger financial performance as production of our new Range Rover and Range Rover Sport ramped up, improving revenue, margins and cash flow, despite continuing semiconductor constraints,” said Thierry Bollore, JLR’s Chief Executive Officer.
The company’s EV penetration is presently at 8 per cent and the commercial vehicle business registered a 19 per cent growth in domestic sales led by stronger sales of MHCVs. Exports of CVs shrunk 22 per cent due to the economic situation in certain markets.
No price hikes
The company does not intend on undertaking major price increases in the coming quarters. “There was residual commodity pricing, and the last of the price hikes were done,” said PB Balaji, CFO, Tata Motors Group. Further, it plans to complete all conditions regarding the Ford plant acquisition in the coming quarter.
Meanwhile, the company also announced its intent to delist its American Depositary Shares from the New York Stock Exchange and terminate its American Depositary Share Program. “We have informed the NYSE of the intent to delist its ADS and will be filing for delisting on January 13, 2030. We will then have six months and by July 2023, the ADR needs to get converted into ordinary shares,” said Balaji.
“We have a positive stance on Tata Motors given the PV business is likely to gain further market share, led by new launches and expanding portfolio. CV volumes will benefit from the cyclical upturn, improving fleet utilisation and freight rates new refreshes in Land Rover, and strong order book to benefit JLR,” said Mansi Lall, Research Analyst, Prabhudas Lilladher Pvt Ltd.