Indian multinational automotive manufacturer Tata Motors reported its third-quarter earnings for fiscal 23. In two years, it was the first time the company’s business swang back in the black because of a rise in demand for passenger cars and medium and heavy commercial vehicles.
During the quarter, it had a consolidated net profit of ₹2,957.71 crore, up from a net loss of ₹1,516 crore in the year-ago period. In the September quarter (Q2FY23), it had a net loss of ₹944.61 crore.
During the third quarter, the consolidated revenue from operations came in at ₹88,488.59 crores, up 22.5% from ₹72,229 crores a year ago.
The Mumbai-headquartered company posted a consolidated operating profit. Earnings before interest, taxes, depreciation and amortization ( EBITDA) surged 11 percent YoY to ₹9,900 crore, and margins improved 90 basis points.
Analysts estimated the auto major to turn into the black with a net profit between Rs 300-800 crore.
Consolidated sales were estimated to increase 14.5 percent year on year (YoY) and 3.9 percent sequentially to Rs 82,718 crore.
Jaguar Land Rover (JLR) Segment Earnings:
JLR revenue was clocked at £6.0 billion, up 28% from Q3FY22 and up 15% sequentially, benefitted from better supplies, an improved model mix, and pricing.
Earnings before interest and tax (EBIT) margin expanded 230 bps on-year to 3.7%. EBITDA margin dropped 10 bps to 11.9%.
The revenue of Tata Commercial Vehicles rose 22.5% in Q3FY23 compared with Q3FY22 at ₹16.9 thousand crores.
Tata Passenger Vehicles revenue climbed 37% compared with Q3FY22 at ₹11.7 thousand crores on higher volumes and realizations.
Tata Motors Q3 FY23 Financial Results.
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Commercial Vehicles (CV)
Tata CV sales increased 22.5 percent to Rs 16,900 crore. EBITDA margins stood at 8.4 percent (up 580 bps YoY), and EBIT margins clocked at 5.9 percent (up 650 bps YoY) as a better mix, higher realizations, cost savings, and reduction in commodity prices benefitted the company.
Tata CV’s global wholesales plummeted 6 percent on-year to 97,100 units due to weaker international business volumes.
CV domestic wholesales were flat at 90,800 units, and domestic retails were up 5 percent on-year to 97,700 units.
Passenger Vehicles (PV)
Tata PV sales rose 37 percent YoY to Rs 11,700 crore because of an increase in volumes and realizations.
EBITDA margins rose 370 bps YoY to 6.9 percent, and EBIT margins were up 510 bps YoY at 1.5 percent due to improved volumes and mix, higher realizations, and softening commodities.
PV domestic wholesales increased 33 percent to 1,31,300 units. Domestic retails increased 27 percent to 1,38,900 units.
Electric vehicle (EV) volumes reflected the highest increase during the quarter and rose 116 percent to 12,600 units.
Outlook:
“We remain cautiously optimistic about the demand situation despite global uncertainties. We will remain vigilant on demand, and our continued focus on profitable growth, improving semiconductor supplies, and stable commodity prices will aid revenue growth, margin improvement, and positive cash delivery in Q4 FY23,” the company said in an exchange filing.