The sharp decline in profit came on the back of strong sales and high demand for its vehicle across verticals
The country's largest electric vehicle maker and parent of luxury car maker Jaguar Land Rover, Tata Motors, on Wednesday said that its consolidated net loss narrowed to Rs 945 crore from loss of Rs 4,441 crore in the same period last year and loss of Rs 5,006 crore in the previous quarter. The sharp decline in profit came on the back of strong sales and high demand for its vehicle across verticals.
Its revenue from operations jumped 30 per cent annually to Rs 78,846.92 crore compared with Rs 60,435.92 crore in the same quarter last year. Revenue of its luxury car maker Jaguar Land Rover came in at 5.3 billion pounds, up 36 per cent year-on-year (Y-o-Y).
Strong demand continuing with client order book now at 205,000 units; our three most profitable models, the New Range Rover, New Range Rover Sport and Defender account for over 70 per cent of the order book, Jaguar Land Rover said in a regulatory filing.
Tata Motors’ commercial vehicle (CV) business registered annual 15 per cent growth in sales. For India business, domestic wholesales were at 93,651 vehicles, up 19 per cent Y-o-Y. However, exports were at 6,771 vehicles, lower by 22 per cent affected by financial crisis in few export markets. Domestic retails grew at a higher rate as compared to wholesales. The margin improvement was aided by higher volumes, realizations, although impacted by residual commodity inflation and forex, Tata Motors said.
During the quarter Tata Motors' passenger vehicle (PV) segment staged a strong performance as revenue of PV business jumped 71 per cent to Rs 12,500 crore. Its earnings before interest, tax, depreciation and amortization (EBITDA) margin also known as operating profit margin came in at 5.4 per cent.
The company sold 1,42,300 units of passenger vehicle during the quarter, up 69 per cent annually. The company also signed definitive agreement for acquisition of Ford India’s Sanand plant. The plant would unlock capacity of 3,00,00 vehicles per annum and scalable to 4,20,000 vehicles per annum, the Mumbai-based auto giant said.
“Demand for passenger vehicles remained strong in Q2 FY23 fuelled by improving supply of semiconductors, festive season and new launches. Tata Motors scaled new highs with sales of 142,325 units during the quarter, recording a growth of 70 per cent versus Q2FY22 with SUV sales contributing a rich 66 per cent of the quarterly PV sales. In electric vehicles, the company posted record-making sales of 11,522 units in Q2FY23, registering a growth of 326 per cent versus Q2 FY22. The recent festive season (Navratri to Dhanteras) saw 43 per cent growth in retail sales over the previous year’s festive season sales,” said Shailesh Chandra, Managing Director Tata Motors Passenger Vehicles Ltd.
Tata Motors stock price fell 0.44 per cent to close at Rs 433 ahead of its earnings announcement.