May 13, 2022
By: bhakti.makwana@timesinternet.in
Credit: BCCL
The Tata Group company suddenly narrowed its losses in the latest March quarter and surprised its investors.
Credit: BCCL
The Tata Group company suddenly narrowed its losses in the latest March quarter and surprised its investors.
Credit: BCCL
Losses at Tata Motors were cut down to ₹1,033 crore in January to March as compared to ₹7,605 crore during the same quarter last year.
Credit: BCCL
Its revenue dropped 11.4 percent to ₹78,439 crore during March quarter as against ₹88,627 crore last year due to lower sales in British subsidiary Jaguar Land Rover.
Credit: BCCL
Its shares surged nearly 10 percent to ₹408 per share as investors cheered its performance though losses still persisted on account of semiconductor shortage and inflation headwinds.
Credit: BCCL
Its Indian passenger vehicles business reported highest quarterly and annual sales since inception, with revenues jumping 62 percent year-on-year, due to strong demand.
Credit: BCCL
The sales of its international luxury brand JLR dipped 27 percent due to the semiconductor chip shortage.
Credit: BCCL
The global semiconductor shortage will continue next fiscal year with gradual improvement, the company said. Covid lockdowns in China as well as the new Range Rover Sport model changeover are expected to limit volume improvements next quarter.
Credit: BCCL
JLR said its sales to Russia halted in March and “remain paused". But sales in Russia and Ukraine historically account for only 2.5 percent of its global sales.
Credit: BCCL
“We expect performance to improve through the year as the China COVID and semiconductor supplies improve and aim to deliver strong EBIT improvement and free cash flows in FY23 to get to near net auto debt free by FY24,” said Tata Motors which believes that demand will remain strong despite geopolitical and inflation concerns.
Credit: BCCL
Morgan Stanley said last year that Tata Motor’s Indian business will post profits by the end of March 2023, after 8 years of losses.
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The company sold 19,105 electric vehicles in FY22 while acquiring a market share of 87 percent in FY22. It sold 9,094 units in March 2022.
Credit: BCCL