New Delhi: Auto major Tata Motors on Monday reported a widening of its consolidated loss for the July to September 2021 quarter to INR 4,415.54 crore. The company had posted a consolidated loss of INR 307.26 crore for the corresponding quarter last year, Tata Motors said in a regulatory filing.
Tata Motors consolidated revenue from operations stood at INR 61,378.82 crore, compared to INR 53,530 crore during the same period last year.
Its total expenses stood at INR 65,712.83 crore in Q2 FY22, as against INR 54,982.77 crore in Q2 FY21.
Girish Wagh, executive director, Tata Motors Ltd, said, “During the quarter, we accelerated the sales momentum to increase market share in every segment of commercial vehicles, recorded a decade high sale in passenger vehicles and delivered the highest ever quarterly sales in electric vehicles. Looking ahead, we expect the demand for commercial, passenger and electric vehicles to remain strong even as concerns about the supply of semiconductors and high input costs continue.”
During the quarter, we accelerated the sales momentum to increase market share in every segment of commercial vehicles, recorded a decade high sale in passenger vehicles and delivered the highest ever quarterly sales in electric vehicles. Looking ahead, we expect the demand for commercial, passenger and electric vehicles to remain strong even as concerns about the supply of semiconductors and high input costs continueGirish Wagh, Executive Director, Tata Motors Ltd
According to the automaker, India operations showed significant improvement compared to Q2 a year ago, however the supply chain issues, and commodity inflation impacted the margins. As a result, TML reported EBIT of (1.6)% and pre-tax loss of INR 0.8K crore for Q2 FY22.
“PV business continued its turnaround journey and strengthened its double-digit market share with decade-high quarterly sales. The EV business recorded nearly three-fold growth and recorded the highest monthly and quarterly sales of 1,078 units and 2,704 units, respectively, it said.
On a standalone basis, the auto major posted a loss of INR 659.33 crore as against INR 1,212.45 crore in the same quarter last fiscal,” it said.
Its revenue from operations stood at INR 10,996.02 crore, compared to INR 5,594.60 crore a year ago.
About the outlook, the auto major said, “Demand remains strong for JLR and India PV while CV demand is improving gradually. Semiconductor issues and commodity inflation will continue to impact the near term and we are doing our best to manage them. The performance is expected to improve gradually starting in H2 as both the supply chain and the pandemic situation improves.”
As for JLR, wholesales to dealers in the Quarter were 64,032 vehicles, down 12.8% year-on-year, and retail sales (including that of the China Joint Venture) were 92,710 vehicles, down 18.4%, reflecting the semiconductor shortage and lower retailer inventories.
For Q2 FY22, revenue was GBP 3.9 billion with a pre-tax loss of GBP 302 million (EBIT margin -4.7%). Free cash outflow was GBP 664 million, this was significantly better than prior guidance for a GBP 1 billion free cash outflow, reflecting prioritized production of higher margin products and cost controls to reduce the cash break-even point further, the company said.
The global semiconductor shortage remains challenging but I’m pleased to see the actions we have been implementing reduce the impact. With strong customer demand with a record order book we are well placed to return to strong financial performance as semiconductor supply begins to improve..Thierry Bollore, CEO, JLR
Thierry Bollore, chief executive officer, JLR said, “The global semiconductor shortage remains challenging but I’m pleased to see the actions we have been implementing reduce the impact. With strong customer demand with a record order book we are well placed to return to strong financial performance as semiconductor supply begins to improve. At the same time, we continue to execute our Reimagine strategy to realise the full potential of the business and create the next generation of the most desirable luxury vehicles for the most discerning of customers – starting with the stunning new Range Rover.”
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Tata Motors sold 32,339 units of ICE cars and 1,586 units of electric cars during the month under review.