Tata Motors Q3FY22 Results: Net loss narrows sequentially to Rs 1,451 crore, revenue dips 5%
Auto major Tata Motors reported weak third-quarter numbers for the financial year 2021-22 (Q3FY22) on Monday, as it registered a consolidated loss of Rs 1,451.05 crore and revenue came at Rs 72,229 crore, down 4.5 per cent year-on-year during the quarter.
Auto major Tata Motors reported weak third-quarter numbers for the financial year 2021-22 (Q3FY22) on Monday, as it registered a consolidated loss of Rs 1,451.05 crore and revenue came at Rs 72,229 crore, down 4.5 per cent year-on-year during the quarter.
In comparison, the Tata Group automobile company had posted Rs 2941 crore of profit and revenue was at Rs 75,653 crore during the same quarter of the previous fiscal. The loss of the company has narrowed sequentially, as in the September quarter it reported a loss of Rs 4415 crore.
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According to the company’s filing to exchanges, “The consolidated EBITDA at 10.2 per cent, down 460 basis points (bps) and EBIT at 1.7 per cent, down 470 bps.”
Similarly, the UK-based subsidiary of the company JLR’s revenue slipped 21.2 per cent to £4.7 billion, while EBITDA at 12 per cent and EBIT at 1.4 per cent during the October-December quarter, it said.
In the segment-wise, the commercial vehicle’s revenue surged 28.7 per cent YoY, EBITDA at 2.6 per cent, down 540 bps, and passenger vehicles’ revenue grew by 72.3 per cent, EBITDA at 4.2 per cent, up 40 bps during the third quarter of FY22, the auto heavyweight said in results filing.
With respect to JLR, the company said, “Sales remain constrained by chip shortages with retail sales of 80,126 vehicles, down 37.6 per cent over Q3FY21. The chip supply situation is gradually improving with production volumes of 72,184 units up 41 per cent over Q2 FY22 and wholesales of 69,182 units up 8 per cent on Q2FY22.”
“For Q3, free cash flow was positive at £164 million in Q3FY22, demonstrating the progress JLR made in reducing the breakeven point in the business through mix optimisation and cost efficiencies,” the company added while stating the third-quarter performance of JLR.
Similarly, in terms of Tata Motors' performance, the company pointed out, “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 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,” Tata Motors said in its overall outlook of the company.
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05:22 PM IST