Tata Motors’ Consolidated Revenues Up By 30% In Q2FY23

Mobility Outlook Bureau
09 Nov 2022
07:51 PM
2 Min Read

Besides the company’s consolidated EBITDA and EBIT grew by 9.7% and 2.4% respectively to 130bps and 390bps

Tata Motors

Tata Motors on Tuesday announced that its consolidated revenues for Q2FY23 stood at INR 79,611 crore representing a 29.7% YoY growth.

Besides the company’s consolidated EBITDA and EBIT grew by 9.7% and 2.4% to 130bps and 390bps, respectively. 

Meanwhile, Tata Motors’ revenue for the first half of FY23 were reported at INR 151,546 crore, translating to a 18.6% YoY growth. While the EDITDA and EBIT for H1FY23 increased by 8.6% and 1% to 30 bps and 240bps respectively.

Jaguar Land Rover

The British luxury brand helped the Indian major scoop up revenues of £5.3 billion in Q2FY23, up 36% YoY from Q2 FY22. The growth for the quarter was credited to a strong model mix and pricing with wholesale volumes (excluding China JV) of 75,307 up 17.6% YoY and 4.9% on the prior quarter.

The production ramp up of New Range Rover and New Range Rover Sport augmented with 13,537 units wholesaled in the quarter, up from 5,790 in Q1.

Interestingly, with an order book of 205,000 units, the three most profitable models in the portfolio, the New Range Rover, New Range Rover Sport and Defender account for over 70% of the total order. 

Meanwhile, the company’s Refocus transformation programme delivered a further £300 million of value in Q2 and remains on track to deliver £1 billion this year.

PB Balaji, CFO, Tata Motors Group noted that despite the strong growth, the only concern for the quarter was that the wholesale increase was lower than planned, primarily due to a lower-than-expected supply of specialised chips from one supplier which could not be readily re-sourced in the quarter.

To get around this strategic partnership with Wolfspeed was formed, securing supply for silicon carbide semiconductor technology for inverters, integral to the company’s electrification plans with further agreements with strategic semiconductor suppliers to follow.

Thierry Bolloré, CEO, Jaguar Land Rover, noted that the company expects to continue to improve its performance in H2, as new agreements with semiconductor partners take effect, enabling to build and deliver more vehicles to the customers.

Tata Commercial Vehicles

The CV business of the company generated revenues of INR 16,400 crore, marking a 35.5% growth over last years’ Q2. PBT was at INR 300 crore with EBITDA and EBIT at 180 bps and 260 bps with a growth rate of 5% and 2.3% respectively.

The company reported a global wholesale of 103,100 units in the Q2FY23, up by 15% compared to Q2FY22. The CV exports for the company however shrunk sharply by 22% due to the economic situation in certain markets, though it improved sequentially by 30%.

On the other hand, though the domestic wholesales grew by 19% in Q2FY23 to 93,600 units and retails by 23% to 94,900 units.

Balaji noted that the growth was led by stronger sales of MHCVs and a robust recovery in passenger carriers demand.

Girish Wagh, Executive Director Tata Motors,  noted that Tata Motors aims to drive the business on “Demand Pull” by focusing on customer connect, product innovation, service quality and thematic brand activations thereby improving customer affinity for the brands, step up registration market shares sustainably, and improve realisations and profitability.

Passenger Vehicles

The PV business for the company saw a strong demand in the quarter under review on account of festive season and strong demand for UV’s led by Punch and Nexon.

The business unit reported revenues of INR 12500 crore in Q2FY23, representing 71% growth over the same time last year.

The company’s wholesale stood at 142,300 units which is up by 69% compared to Q2FY22 while the domestic sales were up by 57% to 133,700 units. Interestingly, the quarter also saw the highest sales for the EV portfolio as well with a reported growth by 326% to 11,500 units.

The company said that the EV penetration for the quarter stood at 8% while the CNG penetration increased to 10% in Q2FY23.

However, margins were affected because of residual commodity inflation. However, the market share improved to 14.1% in H1 FY23, Tata Motors said.

Shailesh Chandra, Managing Director Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility, said that the demand for passenger vehicles remained strong in Q2FY23 fuelled by improving supply of semiconductors, festive season and new launches.

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