Tata Motors surpassed estimates in consolidated net profit to ₹5,407.79 crore in the fourth quarter of FY23, against a net loss of ₹1,032.84 crore in the same quarter a year ago. Sequentially, the Q4FY23 PAT saw a growth of nearly 83%. The company’s top-line front came in strong with an upside of over 35% YoY in revenue. Furthermore, the Tata Group-backed firm has announced a dividend for FY23.
On a consolidated basis, revenue from operations stood at ₹1,05,932.35 crore in Q4FY23, as compared to ₹78,439.06 crore in Q4 of previous fiscal. In December 2022 quarter, the revenue was at ₹88,488.59 crore.
According to Tata Motors, volumes continued to improve on strong India demand and better supplies at JLR. Pricing actions and a richer mix led to improved ASPs and higher revenue growth. Easing inflation, better mix, pricing actions, and favorable operating leverage resulted in strong improvements in margins and profits.”
Overall, in FY23, the business recorded an all-time high revenue of ₹ 346.0K crore and an EBITDA ₹37.0K crore, and PBT (bei) of ₹1.5K crore. The India business net debt was the lowest in 15 years at ₹6.2K crore.
Talking about the financial performance, PB Balaji, Group Chief Financial Officer, Tata Motors said, “The year ended on a strong note with all automotive verticals delivering robust performances leading to multiple all-time high achievements. The distinct strategy employed by each business is delivering, in unison, leading to a sharp improvement in overall results.”
Coming to shareholders, the auto player had good news for them. Tata Motors’ board of directors on Friday recommended a final dividend of ₹2 per Ordinary Share (100% of Face Value) and ₹2.1 per share for DVR shareholders subject to approval by the shareholders at the AGM.
In the case of its brand Jaguar Land Rover (JLR), the luxury carmaker posted revenues of £7.1 billion, up 49% (y-o-y) in Q4FY23, profit before tax, and exceptional items of £368 million. Also, JLR’s Q4 EBIT margin was at 6.5%.
Further, JLR’s wholesales in Q4 were at 94,649 units, up 24% YoY. Meanwhile, the order book stood at 200K units — remaining strong despite increased retail sales. Range Rover, Range Rover Sport, and Defender represent 76% of the book.
As of March 31, 2023, JLR’s net debt improved to £3.0 billion — with cash of £3.8 billion and liquidity of £5.3 billion (including undrawn £1.52 billion revolving credit facility).
On JLR, Adrian Mardell, Jaguar Land Rover’s Interim Chief Executive Officer, said, “With the collective strength of our people, we will continue to deliver our Reimagine strategy. Demand for our exceptional modern luxury vehicles remains strong and with a pipeline of ultra-desirable electrified models on the horizon, I am excited and confident for our future.”
Going ahead, JLR expects gradual improvements in chip supply to continue during the next fiscal year. While supply challenges and macro risks remain, the carmaker is targeting to grow wholesales through the year and achieve EBIT margins of over 6% in FY24.
Investment spending is expected to increase to about £3 billion at JLR in FY24, but free cash flow is expected to be >£2 billion and net debt is expected to reduce to <£1 billion by FY24.
Tata Motors, which is the parent company of JLR, remains optimistic on the demand situation despite near term uncertainties and expect a moderate inflationary environment in the near term. It aims to further improve and deliver a strong performance in FY24.
“The momentum is expected to build through the year factoring in seasonality, stabilization of JLR supply chain and post RDE impact in India,” Tata Motors said.
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