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Automotive giant Tata Motors posted a consolidated net profit of Rs 3,202 crore in the first quarter (Q1) of 2023-24 (FY24), beating Street estimates, riding on a 42 per cent year-on-year (YoY) jump in revenues to Rs 1.02 trillion. The company had posted a net loss of Rs 5,006 crore in the corresponding quarter last year.
Sequentially, the revenues are down 3.4 per cent, compared to Rs 1.05 trillion in the fourth quarter of 2022-23, and the profit after tax (PAT) down 41 per cent. Bloomberg estimates had pegged the Q1 revenues at Rs 1.01 trillion and a PAT of Rs 2,552 crore.
Tata Motors stock ended the day’s trade on the BSE at Rs 641.8, up 2 per cent.
Tata Motors on Tuesday announced the termination of its differential voting rights or A-share programme.
Tata Motors Group Chief Financial Officer P B Balaji said that the capital expenditure of this year is Rs 38,000 crore, of which £3 billion will be for Jaguar Land Rover (JLR), and Rs 8,000 crore for Tata Motors.
The consolidated earnings before interest, tax, depreciation, and amortisation came in at Rs 14,700 crore, up 177 per cent YoY, showing an improvement driven by JLR and the commercial vehicle (CV) business, while the passenger vehicle (PV) business was steady, the company said.
JLR revenues were up 57 per cent YoY to £6.9 billion, driven by strong wholesales and an improved mix. Sequentially, however, JLR revenues slipped marginally from £7.1 billion in the previous quarter.
JLR business had a free cash flow (FCF) of £451 million, the highest ever Q1 cash flow on record, and the cumulative FCF over the past three quarters is £1.8 billion.
“Second-quarter production and cash flow are expected to be lower than Q1, reflecting the annual summer plant shutdown, while wholesales and profitability are expected to be more in line with recent quarters,” the company said.
Balaji said that JLR will have a shorter number of production days in the coming quarters because of the summer holidays and the shutdowns it is taking. This is a one-quarter issue only, he clarified.
JLR has an order book of 185,000 units.
As for the CV business, volumes were lower by 15 per cent YoY due to the transition to the Bharat Stage VI Phase II. The Q1FY24 revenues were up 4.4 per cent for the CV business to Rs 17,000 crore, with a profit before tax (PBT) and exceptional items of Rs 900 crore. Sequentially, however, revenues were down 19 per cent. The company maintained a share of 39 per cent in the domestic CV market as of Q1FY24.
Girish Wagh, executive director, Tata Motors, said: “We were impacted in the earlier part of the quarter with availability issues due to this large transition but delivered sequentially improved performance as the quarter progressed.”
The PV revenues were up 11.1 per cent YoY to Rs 12,800 crore, with PBT and exceptional items of Rs 200 crore. Revenues were up marginally over Rs 12,100 crore in the previous quarter. PV wholesales were up 7.6 per cent to 140,450 units, and Tata Motors posted its highest electric vehicle (EV) volumes for a quarter (including exports) at 19,346 units, up 105 per cent YoY.
EV penetration was 14 per cent of its portfolio, while compressed natural gas vehicles had an 8 per cent share in Q1FY24. It enjoys an EV market share of 76 per cent and delivered 10,000 units of the Tiago EV in less than four months.
Balaji clarified that the UK battery plant would have JLR as the anchor customer, and Tata Motors EV battery supplies would come from the upcoming Sanand plant in Gujarat by Agratas Energy Storage Solutions. He added that with lithium prices going up, battery prices have gone up a fair bit, but it sees this moderating in the second half of the year.
“We are not looking at any major price hikes, and we would look at price hikes from an inflation point of view. We are looking at moderate inflation,” Balaji added.
Sequentially, the revenues are down 3.4 per cent, compared to Rs 1.05 trillion in the fourth quarter of 2022-23, and the profit after tax (PAT) down 41 per cent. Bloomberg estimates had pegged the Q1 revenues at Rs 1.01 trillion and a PAT of Rs 2,552 crore.
Tata Motors stock ended the day’s trade on the BSE at Rs 641.8, up 2 per cent.
Tata Motors on Tuesday announced the termination of its differential voting rights or A-share programme.
Tata Motors Group Chief Financial Officer P B Balaji said that the capital expenditure of this year is Rs 38,000 crore, of which £3 billion will be for Jaguar Land Rover (JLR), and Rs 8,000 crore for Tata Motors.
The consolidated earnings before interest, tax, depreciation, and amortisation came in at Rs 14,700 crore, up 177 per cent YoY, showing an improvement driven by JLR and the commercial vehicle (CV) business, while the passenger vehicle (PV) business was steady, the company said.
JLR revenues were up 57 per cent YoY to £6.9 billion, driven by strong wholesales and an improved mix. Sequentially, however, JLR revenues slipped marginally from £7.1 billion in the previous quarter.
JLR business had a free cash flow (FCF) of £451 million, the highest ever Q1 cash flow on record, and the cumulative FCF over the past three quarters is £1.8 billion.
“Second-quarter production and cash flow are expected to be lower than Q1, reflecting the annual summer plant shutdown, while wholesales and profitability are expected to be more in line with recent quarters,” the company said.
Balaji said that JLR will have a shorter number of production days in the coming quarters because of the summer holidays and the shutdowns it is taking. This is a one-quarter issue only, he clarified.
JLR has an order book of 185,000 units.
As for the CV business, volumes were lower by 15 per cent YoY due to the transition to the Bharat Stage VI Phase II. The Q1FY24 revenues were up 4.4 per cent for the CV business to Rs 17,000 crore, with a profit before tax (PBT) and exceptional items of Rs 900 crore. Sequentially, however, revenues were down 19 per cent. The company maintained a share of 39 per cent in the domestic CV market as of Q1FY24.
Girish Wagh, executive director, Tata Motors, said: “We were impacted in the earlier part of the quarter with availability issues due to this large transition but delivered sequentially improved performance as the quarter progressed.”
The PV revenues were up 11.1 per cent YoY to Rs 12,800 crore, with PBT and exceptional items of Rs 200 crore. Revenues were up marginally over Rs 12,100 crore in the previous quarter. PV wholesales were up 7.6 per cent to 140,450 units, and Tata Motors posted its highest electric vehicle (EV) volumes for a quarter (including exports) at 19,346 units, up 105 per cent YoY.
EV penetration was 14 per cent of its portfolio, while compressed natural gas vehicles had an 8 per cent share in Q1FY24. It enjoys an EV market share of 76 per cent and delivered 10,000 units of the Tiago EV in less than four months.
Balaji clarified that the UK battery plant would have JLR as the anchor customer, and Tata Motors EV battery supplies would come from the upcoming Sanand plant in Gujarat by Agratas Energy Storage Solutions. He added that with lithium prices going up, battery prices have gone up a fair bit, but it sees this moderating in the second half of the year.
“We are not looking at any major price hikes, and we would look at price hikes from an inflation point of view. We are looking at moderate inflation,” Balaji added.
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