Tata Motors Q3 Results: Firm posts net loss of Rs 1,451 cr, misses estimate

Auto major Tata Motors on Monday reported a consolidated net loss of Rs 1,451.05 crore for the December quarter against a profit of Rs 2,941.48 crore in the same quarter last year.

The total revenue from operations came in at Rs 72,229.29 crore, down 4.52 per cent against Rs 75,653.79 crore in the corresponding quarter last year. This compares with ET Now poll projection of loss at Rs 1,000 crore and revenue at Rs 72760 crore.

The company said sales for its UK-based subsidiary Jaguar Land Rover (JLR) remained constrained by chip shortages, with retail sales of 80,126 vehicles, down 37.6 per cent over Q3 FY21. For Q3, revenue was £4.7 billion, up 22 per cent from Q2 FY22.

The chip supply situation is gradually improving with production volumes of 72,184 units up 41 per cent over Q2 FY22 and wholesale of 69,182 units up 8 per cent on Q2 FY22, the company said. EBIT margin was 1.4 per cent, and free cash flow was positive at £164 million in Q3 FY 22, demonstrating the progress JLR made in reducing the breakeven point in the business through mix optimization and cost efficiencies.

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Tata Motors India operations showed revenue improvement compared to Q3 a year ago. However, commodity inflation impacted the margins, the company said. Commercial vehicle (CV) revenue was up 28.7 per cent while passenger vehicle (PV) revenue was up 72.3 per cent.

“PV business continued its turnaround journey and strengthened its double-digit market share with highest sales in any calendar year since inception. EV sales witnessed a new peak of 5,592 units in Q3FY22,” the company said.

Tata Motors, in its business outlook, said the demand remains strong despite near term concerns from Omicron spread. The semiconductor supply situation is improving gradually whilst inflation worries persist.

“Over the last two years, the resilience of the business has improved, and it is now intrinsically stronger. With concerted actions in place to address the near-term supply and cost challenges, we expect performance to improve further in Q4 FY22 and beyond,” it added.

“We continue to see very strong demand for our products, underlining the desirability of our vehicles. The global order book is at record levels and has grown to an incredible 30,000 units for the New Range Rover before deliveries even start this Quarter,” said Thierry Bolloré, Jaguar Land Rover’s Chief Executive Officer.

“We expect the demand for commercial, passenger and electric vehicles to sustain even as concerns related to supply of semiconductors, high input costs and rising instances of covid keep the overall situation fluid,” said Girish Wagh, Executive Director Tata Motors.