Tata Motors announced its consolidated financial statements for the first quarter of FY 2023 revealing a 8.3% increase in consolidated revenue over the same period last year. Both Tata Motor’s Passenger Vehicles and Commercial Vehicles verticals showed notable improvements over Q1 FY2022 with revenue growth in excess of 100%. Jaguar Land Rover meanwhile saw revenue in Q1 fall by a little over 11% year-on-year.
Coming to market performance, both Tata Motors PV and CV businesses recorded over 100% sales growth in Q1 in the domestic market. Tata Motors' passenger vehicle business witnessed a notable growth year on year with revenue up 122% to Rs 11,600 crore. Earning before interest and tax too were up 750 basis points while profit before tax was at breakeven. The company reported a 132% growth in domestic retails in the first quarter with sales for EVs also up a notable 444% to 9,300 units.
Tata Passenger Vehicles reported a strong 132% year-on-year growth in domestic retail sales with revenue also up 122%.
Commenting on the PV brand’s performance, Shailesh Chandra, Managing Director Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Limited said, “Demand for passenger vehicles continued to stay strong in Q1 FY23 even as the supply side remained moderately impacted. Overcoming all challenges, Tata Motors consistently set new sales records every month in passenger vehicle to record the highest ever wholesales and production of ~130,000 vehicles, twice as compared to Q1FY22. Electric vehicle sales too scaled new peaks month-on-month to deliver over 440% growth in Q1 FY23 versus Q1 FY22.”
The company said it had seen strong demand for its commercial vehicles in Q1 as construction, agriculture and e-commerce activities ramped up
Shifting to commercial vehicles, Tata reported a 107% growth in revenue in the first quarter with earnings growing to Rs 16,300 crore in Q1 FY 2023. EBIT too was up 690 basis points. Total revenue though was lower than what the company reported in Q4 FY2022. Tata said its CV global wholesales were up 100% at over 1 lakh units. Domestic retail sales for the quarter stood at 90,500 units – a 119% gain year-on-year. The company also expected its market share to improve in the coming quarter from its current 42.5% in the CV segment. The company said it had seen greater demand for its range of CVs owing to increased activity in agriculture, e-commerce, mining and road construction sectors while demand for buses had grown as schools re-opened.
Commenting on the CV division’s performance, Girish Wagh, Executive Director Tata Motors Ltd said, “The CV industry continued to witness rising demand across all segments led by a reviving economy. With the sequential easing of semiconductor shortage and our ramp-up agility, Tata Motors delivered a strong quarter with sales of 1,01,113 units registering 100% growth versus Q1 FY22. During Q1 FY23, we marked a significant leap forward in our commitment towards promoting sustainable mobility with the delivery of ~100 e-buses and successful launch of the Ace EV, which provides a green and smart transport solution for a wide variety of intra-city applications. We also signed a strategic Memorandum of Understanding with leading e-commerce companies and logistics service providers to deliver 39,000 units of the Ace EV along with its enabling eco-system. Furthermore, we also received a letter of allocation of 1500 e-buses from Delhi Transport Corporation, as part of the larger entitled order of 5000 e-buses, from the recently won CESL tender.”
JLR revealed that it saw strong demand for products though it continued to face supply chain constraints.
Coming to JLR, the British firm reported a notable 37% decline in sales over Q1 FY 2022 at 78,825 units as the brand continued to struggle with supply chain constraints, slower and expected ramp-up of production for the new Range Rover and Range Rover Sport and COVID lockdowns in China. The British brand recorded a loss before tax of GBP 524 million. The firm though still saw strong demand for its products across the globe with over 2 lakh customer orders – 60 per cent of which were for the new Range Rover, Range Rover Sport and Land Rover Defender.
JLR said it expects its financial performance to improve over the course of the year with the company taking steps to reduce supply chain constraints.
