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Tata Motors has reported profit after seven quarters, riding on record vehicle sales, in the third quarter of FY23. The automaker posted a quarterly profit of ₹2,957 crore compared with a net loss of ₹1,516 crore in the year-ago period.
The company had reported a net loss of ₹944 crore in Q2.
Total income rose 22.8 per cent y-o-y to ₹89,618 crore. Sequentially, the income rose 11.2 per cent.
“Q3 FY23 was one of the best quarters for the PV industry with strong retail from new launches, robust festive demand, and adequate supply of vehicles. Tata Motors posted its highest-ever quarterly retails in Q3 and crossed 50,000 units of monthly retail for the first time. Wholesales of 131,297 units recorded in Q3 (+32.6 per cent vs Q3 FY22) resulted in the business comfortably crossing the distinctive landmark of 500,000 annual units to post wholesale of 526,798 units in CY22. EVs, too, posted their highest ever sales in Q3 at 12,596 units (+ 116.2 per cent vs Q3 FY22) and crossed the cumulative sales milestone of 50,000 units,” said Shailesh Chandra, MD of Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Limited.
EV business
The company’s EV penetration continues to remain at 8 per cent with the Tiago EV having an order book of 20,000. The commercial vehicle business registered a 24 per cent y-o-y revenue growth with wholesale being down to 6 per cent.
The company further plans to ramp up EV manufacturing at the Sanand plant it acquired from Ford India.
Tata Motors had a cash flow of ₹5,300 crore in Q3 (₹4,000 crore).
JLR performance
JLR revenue was up 28 per cent y-o-y and 15 per cent q-o-q at £6.0 billion. The company stated that the production has of the New Range Rover and New Range Rover Sport has been ramped up with 27,000 units wholesaled in Q3, up from 14,000 units in Q2.
“JLR has returned to profit as chip shortages eased in the quarter and production and wholesales increased. We remain committed to our re-imagine strategy which will transform JLR into an all-electric modern luxury business, whilst delivering our SBTi climate goals and striving to exceed our client’s expectations,” said Adrian Mardell, Interim CEO.
Demand concerns
“There are global demand concerns and exports have been a challenge in certain markets. We are cautious and optimistic,” said PB Balaji, CFO, Tata Motors.
“The Indian CV industry has witnessed a steady, overall demand. Led by realisation improvement, revenue growth was higher than volume growth. Realisation improvement, coupled with commodity softening and cost control, resulted in improved margins,” said Himanshu Singh, Research Analyst, Prabhudas Lilladher Pvt Ltd.
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