Tata Motors Reports Net Loss Of Rs. 1,451 Crore In Q3 FY2022

Tata Motors has released the financial results for the third quarter of Financial Year 2021-22. In the quarter that ended on December 31, 2021, the home-grown automaker witnessed a consolidated loss of Rs. 1,451 crore. It was much worse than what was expected by industry experts, who predicted a loss of around Rs. 1000 crore. In comparison, the company reported a profit of Rs. 2,941 crore for the same period, during the previous fiscal year. The company's total revenue for Q3 FY22 stood at Rs. 72,229 crore, a decline of 4.5 per cent compared to the Rs. 75,654 crore revenue, which was achieved between the October to December period in FY2021.

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Tata Motors said that sales from its luxury car brand, Jaguar Land Rover, remained constrained by chip shortages, with retail sales witnessing a 37.6 decline over Q3 FY21, at 80,126 units. At the same time, the total revenue from JLR stood at GBP 4.7 billion, (Rs. 47,093 crore), a growth of nearly 22 per cent compared to Q2 FY2022. JLR says that the chip supply situation is gradually improving with production volumes reaching 72,184 units, up 41 per cent over Q2 FY22. Earnings Before Interest & Taxes (EBIT) margin stood at 1.4 per cent, and free cash flow was positive at GBP 164 million in Q3 FY 22.

The total revenue from JLR stood at GPB 4.7 billion, (Rs. 47,093 crore), a growth of nearly 22 per cent compared to Q2 FY2022

Thierry Bollore, CEO, Jaguar Land Rover said, "Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles. The global order book is at record levels and has grown an incredible 30,000 units for the New Range Rover before deliveries even start this Quarter."

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Tata Motors' standalone business, including joint operations, saw a loss that stood at Rs.351 crore between the October and December 2021 period. In comparison, the company reported a much higher loss of Rs. 638 crore during the same quarter in FY2021. The company's revenue for the previous quarter stood at Rs. 20,959 crore, a massive 43.3 per cent growth compared to the Rs. 14,631 crore revenue generated in Q3 FY2021. In Q3FY22 Tata Motors' wholesales (including exports) increased 30.4 per cent to 200,212 units.

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In Q3FY22 Tata Motors' wholesales (including exports) increased 30.4 per cent to 200,212 units

Commenting on the company's performance, Girish Wagh, Executive Director Tata Motors said, "At Tata Motors, our agility in both planning and execution, helped optimise production to deliver another strong quarter with accelerated sales. We continue to increase market share in every segment of commercial vehicles and set several new milestones in passenger vehicles with decade-high sales for both the quarter as well as the calendar year 2021. We also recorded the highest ever EV sales during the quarter and sold 10,000 EVs in the first 9 months of FY2022, crossing new milestones."

During the first nine months of FY2022, Tata Motors saw a consolidated loss of Rs. 10,317 crore. In comparison, the company saw a loss of Rs. 5,810 crore during the same April to December period in FY2021. The company's total for 9M FY22 stood at Rs. 200,015 crore, 24 per cent higher than the Rs. 161,167 crore revenue was generated during the same period in the previous fiscal year.