30-Jan-2023Today's Market Indicators

Tata Motors records PAT of Rs 2,958 crore in Q3 FY23
(17:22, 25 Jan 2023)

Total revenue from operations increased by 22.5% YoY to Rs 88,488.59 crore during the quarter. EBITDA for the period under review was Rs 9,853 crore, up 33.2% YoY.

EBITDA margin improved by 90 bps to 11.1% in Q3 FY23 from 10.2% in Q3 FY22. EBIT margin for the period under review was 4.4%, up 270 bps on YoY basis.

The company recorded a pre-tax profit of Rs 3,202.61 crore in the third quarter as against a pre-tax loss of Rs 612.12 crore reported in the corresponding quarter last fiscal.

Finance costs increased by Rs 275 crore to Rs 2,676 crore during Q3 FY23 as compared to Rs 2,401 crore in Q3 FY22 due to higher gross borrowings.

Free cash flow (automotive) in the quarter, was positive at Rs 5,300 crore as compared to Rs 4,000 crore in Q3 FY22, owing to improvement in cash profits and working capital.

JLR reported net profit of 261 million pounds in Q3 FY23 as against a net loss of 67 million pounds in Q3 FY22. Revenue increased by 28% YoY to 6,041 million pounds in Q2 FY23.

Free cash flow in Q3 FY23 of 490 million pounds with EBIT margin of 3.7% and profit before tax of 265 million pounds, up from a loss before tax of 9 million pounds reported in Q3 FY22.

With wholesales of 80 thousand units, JLR recorded a growth in sales of 6% QoQ and 15% YoY and it was the highest quarterly volume since Q1 FY22. Retail sales were higher by 6% YoY but were lower by 4% QoQ, reflecting timing between retails and wholesales.

JLR said that the wholesales in China during the quarter were impacted by lockdowns leading to dealer closures followed by high rates of staff absence as Covid-19 restrictions were relaxed. The situation is expected to recover in the fourth quarter with our dealers open and staff absence closer to normal levels in January. The Refocus transformation programme is on track to deliver a target of £1 billion plus improvements in the year to help mitigate the impact of inflation.

Although there continues to be supply chain and other macro risks, JLR's guidance for the full year remains unchanged. Positive EBIT margin and free cashflow in Q4 FY23 on wholesales of 80,000 or more are expected to achieve breakeven free cashflow and a positive EBIT margin for the full year.

Tata Commercial Vehicles (Tata CV) recorded a pre-tax profit of Rs 938 crore in Q3 FY23 as against a loss of Rs 155 crore in Q3 FY22. Revenue from operations during the quarter was Rs 16,886 crore, higher by 22% YoY despite wholesales being down 6%, reflecting improved mix and better market operating price.

In its outlook, Tata CV said: We expect a good replacement demand, especially in MHCVs in Q4 FY23, as we also maintain a close watch on the evolving geopolitical situation, inflation and interest rate risks on both the supply and demand.”

Tata Passenger Vehicles (TATA PV) recorded revenues of Rs 11,671 crore (up 37% YoY) and a pre-tax profit of Rs 321 crore in Q3 FY23. It had reported a pre-tax loss of Rs 329 crore in Q3 FY22. Wholesales grew 33% yoy to 132.3 thousand vehicles while retails grew 27% YoY to 139 thousand units.

While in Q3 FY23 the industry witnessed some moderation in demand post festive season, we expect the PV industry to continue witnessing robust demand in the next quarter. We expect the growth momentum for EVs to remain strong with their rising popularity and the announcement of progressive policies by several states. The company has commenced deliveries of Tiago.ev in January 2023 and strong 20K+ order book will support growth,” TATA PV said.

Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.

The scrip shed 0.73% to end at Rs 419 on the BSE today.

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