Tata Motors narrows its consolidated losses in Q4FY22

Tata Motors has reported a consolidated net loss of Rs 1,033 crore for Q4FY22 as against Rs 7,605 crore loss during corresponding period last year. The company's revenues too declined by 11.5 percent to Rs 78,439 crore during the same period as against Rs 88,628 crore reported in Q4FY21. 

Girish Wagh, Executive Director, said, “The CV sector, deeply impacted for two successive years, showed promising signs of growth in FY22 supported by a steady recovery in the economy, rising industrial activity and reopening of markets. At Tata Motors, the early adoption of a holistic ‘Business Agility Plan’ enabled us to protect and serve the interests of our customers, dealers and suppliers as well as smartly manage supply related challenges including the global shortage of critical electronic parts.

“The improvement in consumer sentiment, buoyancy in e-business, firming freight rates, reopening of schools and offices and higher infrastructure spending in road construction and mining helped regenerate demand. We optimised production, introduced new passenger and cargo mobility solutions and accelerated sales to grow every quarter and gain higher market share in every segment of commercial vehicles. Looking ahead, we see significant opportunities to leverage the mega trends shaping the Indian automotive industry. We are keeping a close watch on geopolitical developments, fuel inflation and semiconductor shortage and remain optimistic whilst continuing to work closely with our customers and ecosystem.”

Performance division-wise
Tata Passenger Vehicles (business delivered a comprehensive turnaround in Q4 FY22 with highest quarterly revenues of Rs 10,500 crore ( up62 percent ),  EV volumes rose to 9100 units in Q4 and PV market share improved to 13.4 percent. 

Tata CV business continued to show strong sequential recovery led by the MHCV segment.
The business clocked its highest quarterly revenues since Q4FY19 and grew market shares in all segments with .Q4 revenues stood at Rs 185,00 crore (+29 percent YoY and +34 percent QoQ).

The company said that the CV industry is poised for further growth on the back of increased activity in road construction, mining and improved infrastructure spending.

The supply situation continues to show gradual improvement. Despite uncertainties, business sentiments continue to be positive with increasing fleet utilization levels and freight rates. Sharp commodity inflation, however, continues to remain a challenge. The company said it  will continue to step-up its investments in products and new business models to deliver customer value while ensuring profitable growth. Despite near-term supply challenges and inflation concerns, the business aims to deliver strong margins recovery and profitability in FY23.

Jaguar Land Rover revenue came in at £4.8 billion in Q4 FY22, up 1 percent from Q3FY22, reflecting the higher wholesales offset partially by the impact of the runout of the previous generation Range Rover, with the New Range Rover still ramping up. The EBIT margin in the quarter was 2 percent  with profit before tax about breakeven (£ 9 million) before £ (43) million exceptional charge for its  business in Russia. 

Wholesales (excluding the China Joint Venture) in Q4 were 76,526 units, up 11 percent on Q3 FY22 with higher production volumes. Retail sales in Q4 were 79,008 vehicles, down 1 percent from Q3 FY22 as a consequence of constrained wholesales and low dealer inventories, while the mix of electrified retail sales (BEV, PHEV and MHEV) increased to 66 percent for the full year compared to 51 percent in the prior year. Wholesales for the full year FY22 were 294,182, down 15% compared to FY21. Retail sales for FY22 were 376,381, down 14 percent as compared to FY21.

Thierry Bollore, Jaguar Land Rover’s Chief Executive Officer, said, “The environment remains difficult in light of the global chip shortage and other challenges. However, I’m encouraged by the continuing strong customer demand for our products, highlighted by a record order book. And we are continuing to execute our Reimagine Strategy with exciting new products like the Defender, New Range Rover and just announced New Range Rover Sport while we are rapidly progressing our plans for a new generation of electric vehicles with our all electric Jaguar strategy and BEV first EMA platform for new Land Rover products.” 

The Tata Motors stock closed down 4 percent in trade on May 12, 2022.

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