Tata widens to Rs 4,951 in April-June

Tata Motors Ltd posted a wider first- loss on Wednesday.

Jaguar Land Rover’s parent company reported a consolidated net loss of Rs 4,951 crore in the quarter ended June, compared with Rs 4,450 crore a year earlier, as chip shortages and China’s COVID-19 lockdown impacted JLR’s Sales.

The company posted a consolidated net loss of Rs 4,450 crore in the same period last year.

The company added that during the period under review, consolidated operating income was Rs 71,935 crore compared to Rs 66,406 crore in the same period last year.

The company’s UK Jaguar Land Rover (JLR) reported first-quarter of £4.4bn, down 7.6% from Q4FY22, hit by supply challenges such as semiconductor shortages.

It sold 78,825 vehicles in the June quarter, essentially unchanged from the fourth quarter of the previous fiscal year and down 37% from the April-June period of the previous fiscal year.

Jaguar Land Rover chief executive Thierry Bollore said headwinds in global semiconductor supply and the COVID-19 lockdown in China affected its business performance during the review period.

“We have a fully strengthened organizational setup to with the semiconductor crisis. The return to production growth to achieve greater volumes is now and will allow us to capitalize on record orders in the second quarter,” he added.

Tata Motors Group Chief Financial Officer PB Balaji said in a conference call with reporters that the loss recorded in the quarter was due to Jaguar Land Rover as the other two businesses — CV (commercial vehicles) and PV (passenger vehicles) — Operating is being realized.

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On an individual basis, Tata Motors reported a net loss of Rs 1.81 crore, an from a net loss of Rs 1,321 crore a year earlier.

The company said revenue from stand-alone operations stood at Rs 14,874 crore compared to Rs 6,577 crore in the same period last year.

Tata Motors noted that despite concerns about inflation and geopolitical risks, demand is expected to remain strong, while the supply situation is expected to improve further.

Cooling commodity prices are expected to help boost underlying profit margins, it added.

“We aim to substantially improve EBIT and free cash flow starting in the second quarter to achieve near net auto debt in FY24,” the auto giant said.

Shailesh Chandra, managing of Tata Motors Passenger Vehicles, said the company dispatched more than 130,000 domestic passenger vehicles in the first quarter, a record high.

He added that sales of electric vehicles increased by more than 440% in the first quarter compared to the same period last year.

“Looking ahead, we expect a gradual in the supply side, including that of key electronic components. We will continue to monitor the changing demand and supply situation and will remain agile and take necessary action swiftly,” Mr Chandra noted. .

Wholesale volume of domestic and commercial vehicles in the first quarter was 95,895 units, a year-on-year of 124%.

However, the company noted that exports of 5,218 vehicles were down 23 percent in some export markets due to the financial crisis.

“Going forward, we remain cautiously optimistic on overall CV demand, while closely monitoring interest rates, input costs, carrier profitability and semiconductor availability,” said Girish Wagh, executive director of Tata Motors.

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Mr. Balaji noted that the company expects semiconductor shortages to ease in the future.

Consolidated operating income for the period under review was Rs 71,935 crore, compared to Rs 66,406 crore in the same period a year earlier, the company said in a regulatory filing.

On an individual basis, Tata Motors reported a net loss of Rs 1.81 crore, an from a net loss of Rs 1,321 crore a year earlier.

The company said revenue from stand-alone operations stood at Rs 14,874 crore compared to Rs 6,577 crore in the same period last year.