Tata Motors on May 12 swung to a consolidated net profit for the quarter ended March at Rs 5,407.79 crore, against a net loss of Rs 1,032.84 crore in the same quarter last year.
Revenue from operations came in at Rs 1,05,932.35 crore, up 35.05 percent from Rs 78,439.06 crore in the corresponding quarter last year.
The Board of Directors at the Tata Group automaker recommended a final dividend of Rs 2 per ordinary share and Rs. 2.1 per share for DVR shareholders, subject to approval by the shareholders at the AGM.
“The year ended on a strong note with all automotive verticals delivering robust performances leading to multiple all-time high achievements. The distinct strategy employed by each business is delivering, in unison, leading to a sharp improvement in overall results. We remain confident on growth with cash flow generation, to achieve our stated goals,” said PB Balaji, Group Chief Financial Officer, Tata Motors.
The company in its outlook for the current financial year said it remains optimistic on the demand situation despite near term uncertainties and expect a moderate inflationary environment in the near term.
"In this context, we aim to further improve and deliver a strong performance in FY24. The momentum is expected to build through the year factoring in seasonality, stabilization of JLR supply chain and post RDE impact in India," it said in a release.
JLR
For the Jaguar and Land Rover, Tata Motors' UK-based luxury car unit, revenue in Q4 came in at £7.1 billion, up 49 percent y-o-y as chip supply improved further. Wholesales in Q4 were 94,649 units, up 24 percent y-o-y.
EBIT margin for the quarter was 6.5 percent while its profit before tax and exceptional items was £368 million. Free cash flow in Q4 stood at £815 million resulting in £1.3 billion in H2FY23 and £521 million for the full year.
Thus, net debt on JLR improved to £3 billion as of 31 March 2023 with cash of £3.8 billion and liquidity of £5.3 billion (including undrawn £1.52 billion revolving credit facility).
The company said its order book of 2,00,000 units remains strong despite increased retail sales. Range Rover, Range Rover Sport and
Defender represent 76 percent of the book.
“JLR delivered a strong set of results for the fourth quarter. We increased production and delivered revenue, profit, free cash flow and wholesales 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 percent and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3 billion," said Adrian Mardell, Jaguar Land Rover’s Interim Chief Executive Officer.
CV
For the commercial vehicle business, Q4 revenue was at Rs 21,200 crore, up 14.6 percent. Profit before tax stood at Rs 1,700 crore.
CV domestic wholesales during the quarter were at 1,12,500 units rising 2.4 percent YoY, while domestic retails were at 1,14,200 units, up 6 percent.
The company said it has commenced deliveries of ACE EV, marking a leap forward in offering sustainable mobility solutions. It added that smart city mobility business continues to witness strong growth as it signed definitive agreement for operating 1,500 buses in Delhi, 921 buses in Bengaluru and 200 buses in Jammu & Kashmir.
PV
Tata Motors said in Q4, its passenger vehicle revenue stood at Rs 12,100 crore, up 15.3 percent YoY. EBITDA and EBIT margins improved to 7.3 percent and 1.4 percent, respectively. Margins improved on higher volumes, better realizations, and operating leverage.
Looking ahead, Tata Motors expects the industry growth to moderate due to a strong base effect and other macro factors such as rising interest rates, inflation, and the cost impact from progressive regulatory norms. The electrification trend is set to strengthen further, it added.