Tata Motors Q2 consolidated net loss was Rs 944.6 cr


New Delhi: Tata Motors Limited reported a net loss of Rs 944.61 crore for the quarter ended 9 November to 30 September (Q2FY23). During the same period last year, the domestic multinational vehicle manufacturing company reported a net loss of Rs. 4,441.57 crore (Q2FY22).

The Mumbai-based company’s revenue from operations grew 29.7% year-on-year from Rs 61,378.82 crore to Rs 79,611.3 crore during the period under review.

EBITDA, a measure of operating profit, increased in Q2FY23 by 130 basis points (bps) year-on-year and was 9.7%.

Sales in the Indian carmaker’s domestic commercial vehicle sector grew by 19% compared to the second quarter of 2002, driven by growth in medium and heavy commercial vehicles (MHCVs) and a strong recovery in demand from passenger carriers.

Amid high holiday demand and de-bottlenecking, Tata’s passenger vehicle (PV) division maintained its strong momentum with wholesale sales at 142,755 units (+69% YoY and 10% QoQ).

“Demand continues to be strong, but it is still key to monitor as a result of global uncertainty. Improving chip supply and cooling raw material prices will help recover revenues and margins, thereby aiming to significantly improve operating profit (earnings before interest and taxes) and free cash flows in 1H23,” Tata Motors said in its filing to BSE.

Tata Motors’ Jaguar Led Rover (JLR) posted revenue of £5.3 billion in the second quarter of 2023, up 36% from the second quarter of 2012, reflecting superior model range and pricing. Wholesale sales (excluding the Chinese joint venture) were 75,307, which is 17.6% more than a year earlier. and 4.9 percent year-on-year, according to a BSE filing.

Tata Motors claimed that JLR is eyeing long-term partnerships with chip suppliers, which will improve the visibility of future chip deliveries.

According to the company, production and sales volumes are expected to increase, positive profit margins and cash flow are expected to be 23 in the second half of the year, and free cash flow is expected to be close to zero throughout the financial year.

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