Tata Motors Q4 PAT is Rs 5,408 cr. 2023

In the quarter ended 31 March 2023, operational revenue rose 35.05% to Rs 1,05,932.35 crore. The fourth quarter of FY23 saw a pre-tax profit of Rs 4,784.14 crore, compared to a deficit of Rs 341.10 crore previous year. EBITDA rose 60.32% to Rs 14,113 crore. Q4 FY23 EBITDA margin up 210 bps to 13.3% from 11.2% in Q4 FY22. EBIT margin rose 360 bps YoY to 6.8%.

Strong India demand and improved Jaguar Land Rover (JLR) supply helped Tata Motors increase volumes. Pricing and mix increased ASPs and revenue. Lower inflation, better mix, pricing, and operating leverage improved margins and profits.

JLR made 259 million pounds in Q4 FY23 compared to 102 million pounds in Q4 FY22. Q4 FY23 revenue rose 49% to 7,102 million pounds.

Wholesales rose 24% to 94,649 units. Q4 FY23 free cash flow of 815 million pounds yielded 1.3 billion pounds in H2FY23 and 521 million pounds for the year.

As of 31 March 2023, net debt was 3 billion pounds with cash of 3.8 billion pounds and liquidity of 5.3 billion pounds (including undrawn 1.52 billion pounds revolving credit facility).

Order book was 200,000 units. The company said 76% of the book is Range Rover, Range Rover Sport, and Defender.

JLR anticipates chip supply to increase gradually in the coming fiscal year. The firm aims to develop wholesales and achieve EBIT margins of above 6% in FY24 despite supplier issues and macro uncertainties. Investment spending is predicted to rise to 3 billion pounds in FY24, although free cash flow is forecast to exceed 2 billion pounds and net debt to fall below 1 billion pounds.

Adrian Mardell, Jaguar Land Rover’s interim CEO, said, “For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6% and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3 billion.”

In Q4 FY23, Tata Commercial Vehicles (Tata CV) earned Rs 1,704 crore before taxes, up 180.72% from Rs 607 crore in Q4 FY22. Despite wholesales falling 3%, operations revenue rose 14.6% YoY to Rs 21,240 crore due to improved mix and market operating pricing.

Tata CV said, “Advance buying in Q4 FY23 in anticipation of price hikes post BS VI Phase II will have near term impact on demand.” Despite interest rates, gasoline prices, and inflation, we remain positive about FY24 CV demand due to the government’s infrastructure push.

Innovation, service excellence, and theme brand activation will drive our demand-pull approach and client preference. We will aim for stronger realizations and cost savings to guarantee double-digit EBITDA margins for FY24 and strengthen all business verticals.”

Tata Passenger Vehicles (TATA PV) earned Rs 12,093 crore (15.3% YoY). Q4 FY23 earnings before tax was Rs 234 crore, up from Rs 42 crore a year earlier.

Wholesales up 9.5% YoY to 134.8 thousand automobiles, while retails rose 9.7% to 126.1 thousand.

In FY24, the firm plans to maintain market-beating growth in passenger vehicles, maintain aggressive EV penetration, consolidate market share gains, push initiatives to attain double-digit EBITDA in the next years, and maintain positive free cash flows. We will add capacity by integrating the new Sanand facility.

Shailesh Chandra, managing director, Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility, stated, “Tata Motors recorded its third successive year of industry beating growth to register its highest ever-annual domestic sales and achieving a robust 46% sales growth over FY22. Tata Motors sold 50,000 EVs in FY22, its biggest ever, to gain 154%.

Tata Motors reported a consolidated net profit of Rs 2,414.29 crore in FY23, compared to a net loss of Rs 11,441.47 crore in FY22. Operations revenue rose 24.58% YoY to Rs 3,42,874.59 crore in March 2023.

Higher gross borrowings and interest rate increases boosted FY23 finance expenses by Rs 927 crore to Rs 10,239 crore.

Joint venture and associate net profit was Rs 336 crore, up from Rs 74 crore in FY22. Other revenue (excluding donations) was Rs 1,720 crore in FY23 compared Rs 929 crore in FY22.

Due to cash earnings and working capital growth, free cash flow (automotive) for the year was Rs 7.8 thousand crore, up from Rs 9.5 thousand crore in FY22. H2 free cash flow (automotive) of Rs 16.6 thousand crore showed substantial sequential recovery.

Tata Motors stated, “In this context, we aim to further improve and deliver a strong performance in FY24. Seasonality, JLR supply chain stabilization, and post-RDE effect in India could boost momentum throughout the year.

“The year ended on a strong note with all automotive verticals delivering robust performances leading to multiple all-time high achievements,” said Tata Motors Group CFO PB Balaji. Each company’s strategy is improving performance. Growth with cash flow creation will help us meet our goals.”

At the AGM, the company’s board has recommended a final dividend of Rs 2 per ordinary share and Rs 2.1 per DVR share.

Tata Motors, part of the Tata group, makes automobiles, SUVs, pick-ups, lorries, and buses worldwide.

BSE Tata Motors shares increased 0.78% to Rs 515.65.

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