Tata Motors Q1 results FY2023, report Rs 5,006 crore net loss, JLR sales dip by 7.6%

Tata reported a net loss of Rs 181 crore indicating a revival in terms of performance than the recorded net loss of Rs 1,321 crore in the year-ago period.

Tata Motors Q1 results FY2023, report Rs 5,006 crore net loss, JLR sales dip by 7.6%

Home-grown auto major Tata Motors on July 27th reported the company’s consolidated net loss of Rs 4,951 crore in the quarter ended June 2022 compared to the Rs 4,450 crore net loss in the last fiscal for the same quarter. However, the company’s revenue from operations stood at Rs 71,935 crore as against Rs 66,406 crore in the year-ago period.

Tata reported a net loss of Rs 181 crore indicating a revival in terms of performance than the recorded net loss of Rs 1,321 crore in the year-ago period. The standalone revenue from operations also increased to Rs 14,874 crore as against Rs 6,577 crore, according to the company. 

Jaguar Land Rover (JLR) sales saw a 7.6 per cent dip from the fourth quarter of FY22, which affected the overall revenue of the company standing at 4.4 billion pound in the first quarter of this year. The auto major sold only 78,825 vehicles in the June quarter standing at 37 per cent broad flat compared with the April-June period of last fiscal, the primary reason being the semiconductor shortages.

P B Balaji, CFO, Tata Motors Group said in a conference call with reporters that JLR has been the primary reason behind the loss that the company faced. “There is much more visibility coming through compared to what was there a few months back for JLR,” he added. 

“As far as chip shortage is concerned, we do see things starting to ease off. Domestically, in particular, we are not planning for any substantial chip-related challenges,” Balaji said. 

The EV sales increased by about 440 per cent, and the automaker claims to have sold the highest 9,300 units of passenger electric vehicles, accounting for 7 per cent of its total passenger vehicle sales in the first quarter that ended in June 2022. 

Nexon has been the luckiest for the automaker and has contributed majorly to the overall numbers. “Therefore, we remain quite bullish with respect to our game plan on EV. The recent launch of Nexon EV Max has just proven the point even further that the consumer is ready and willing to migrate. It’s a question of how much we are able to supply. So, the challenge is more supply rather than demand,” Balaji said. 

The domestic vehicle sales also saw an upsurge with wholesale sales standing at 95,895 units with a 124 per cent year-on-year up.  On the contrary, the export volume was restricted to 5,218 vehicles, a 23 per cent low from the previous year. 

Despite the thick and thin, Tata Motors expects the demands to remain strong while the supply situation continues to get better gradually. 

Apart from this, Tata Motors and the other parties are in the final stages of the definitive agreements in terms of acquiring the Ford Sanand Plant and something concrete can be expected by the end of this FY.

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