Tata Motors stock near the day's high as net loss narrows to Rs4,451cr in Q1FY22, revenue more than doubles

Consolidated revenue stood at Rs66,406.45cr for the quarter under review - more than doubling from Rs31,983.06cr last year corresponding period.

Jul 27, 2021 11:07 IST India Infoline News Service

Tata Motors
Tata Motors has registered a consolidated net loss of Rs4,450.92cr for the quarter ending June 2021 (Q1FY22) - narrowing from Rs8,437.99cr in the same period a year ago.

Consolidated revenue stood at Rs66,406.45cr for the quarter under review - more than doubling from Rs31,983.06cr last year corresponding period.

In Q1FY22 wholesales (including exports) increased 351.4% to 114,170 units. The volumes across all segments significantly grew as compared to Q1 FY21, however, they were lower than Q4 FY21 due to the lockdowns imposed due to the second wave of the pandemic.

Girish Wagh, Executive Director Tata Motors Ltd said, “The successful implementation of a comprehensive Business Agility plan enabled us to manage lockdowns effectively and also deliver competitive growth as markets reopened. In the near term, we remain focused on fulfilling customer demands while driving all levers of the business to mitigate the unprecedented commodity inflation."

Wagh added, "Looking beyond the short-term challenges, we see significant opportunities to leverage the megatrends shaping the Indian automotive industry. We are working to transform the customer experience digitally and also strengthen our lead in sustainable mobility. We will continue to make the requisite investments to ensure a competitive product portfolio whilst driving down the cash break-evens of the business to deliver consistent, competitive and cash accretive growth over the medium to long term.”

In its audit report, Tata Motors said that that the business scenario continues to remain fluid. The demand situation is likely to improve further despite pandemic uncertainty impacting the short term. However, there are significant challenges on the supply side including semi-conductor issues and runaway commodity inflation.

"Sequential improvement in overall performance is expected from the second half of FY22," Tata Motors said.

At around 11.25 AM, Tata Motors was trading at Rs295 per piece up by 0.7% on Sensex. The stock was near the day's high of Rs295.00  per piece. 

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