Tata Motors fourth quarter net loss narrows to £992m


Tata Motors Ltd. reported that the consolidated net loss for Match 31, which ended in the fourth quarter, fell to £992m compared to a net loss of £7,585m in the same period last year due to the recovery across its businesses, Group CFO PBBalaji said during a conference call. During the quarter, the company reported lower revenue of £77,857 billion compared to £87,772 billion.

For the year, the company reported a net loss of ₹11,308 crore compared to a net loss of 13,395 crore a year ago. However, consolidated sales increased to ₹2,75,235 billion from 2,46,972 crore in the previous year.

On a standalone basis, Tata Motors reported £4.13 billion of net income in the fourth quarter, compared to a profit of £1,645.68 billion a year earlier

Jaguar Land Rover (JLR) revenue was £4.8 billion in Q4 FY22, up 1% from Q3 FY22, reflecting higher wholesale sales, driven in part by the effects of the phase-out of the previous generation Range Rover have been offset, while the new Range Rover is still on the rise.

The EBIT margin for the quarter was 2% with a pre-tax profit of around breakeven (£9m) before special charges of £43m for the Russia business. Free cash flow improved to £340m from £164m in the third quarter, the company said.

Tata Commercial Vehicles business continued to show a strong sequential recovery led by the MHCV segment. The company posted its highest quarterly revenue since the fourth quarter of fiscal 2019 and expanded market share across all segments. Despite lower margins due to commodity inflation, the impact on Q4 PBT was smaller at £6.07 billion, reflecting operational leverage from higher revenues, the company added.

Tata Passenger Vehicles achieved a comprehensive turnaround in Q4 FY22 with the highest quarterly sales. EV volume increased to 9,100 units in the fourth quarter and the PV market share improved to 13.4% (+440 basis points). Robust demand for the “New Forever” range and agile supply actions led to this strong performance, said Mr. Balaji.

On the outlook, he said: “Demand remains strong despite geopolitical concerns and inflation concerns. The supply situation is gradually improving while commodity inflation is expected to remain at elevated levels.”

“We expect performance to improve throughout the year as COVID and semiconductor supplies improve in China and are targeting strong EBIT improvement and free cash flow in FY23 to be near debt free by FY2024 to be,” he added.

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