Tata Motors Q3 net loss narrows sequentially at Rs(-1,516cr) due to lower write-offs in Jaguar Land Rover

1 Feb 2022 , 09:20 AM

Tata Motors Ltd reported -4.53% yoy fall in total sales revenues for the Dec-21 quarter on consolidated basis at Rs72,229cr. On a sequential basis, the revenues were up by 17.68%.

During the December 2021 quarter, on a yoy basis, Tata Motors saw improved traction in the India business with 32.7% growth in the Commercial Vehicles business and 72% growth traction in the sales of passenger vehicles.

However, the overall numbers were impacted  by an 18.2% fall in sales of Jaguar Land Rover as the microchips shortage continued to haunt the supply lines of JLR in the quarter. Overall, JLR retails were down -38% yoy while the Tata Motors retails were up 33% on a yoy basis.

For the Dec-21 quarter, the EBITDA margin at a consolidated level stood at 10.2% with the EBITDA margins falling by 460 bps on a yoy basis.

The EBIT margins came in at 1.7% for the quarter down 470 bps on a yoy basis. If you look at the two principal businesses of Tata Motors, the JLR business saw EBITDA margins at 12%, lower by 380 bps on a yoy basis while the EBIT margins were 1.4%, 530 bps lower on a yoy basis.

The domestic TML business saw EBITDA margins of 3.3%, lower 350 bps on a yoy basis. At the same time, the TML business had EBIT margins of -1.7% in the quarter. Operating margins stood at 1.38%.

Net loss for the Dec-21 narrowed sequentially at Rs-1,516cr compared to a net loss of Rs-4,442cr in the sequential Sep-21 quarter. This was largely on account of huge provisions made for the JLR business on account of the adjustment for the massive shift in the business towards more EVs.

However, on a yoy basis, the losses contrasted with the profits of Rs2,906cr in the Dec-20 quarter. EV sales hit a new peak of 5,592 units in Q3 in the India TML business.

Financial highlights for Dec-21 compared yoy and sequentially

	Tata Motors
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 72,229	₹ 75,654	-4.53%	₹ 61,379	17.68%
Operating Profits (Rs cr)	₹ 999	₹ 6,004	-83.36%	₹ -2,007	-149.79%
Net Profit (Rs cr)	₹ -1,516	₹ 2,906	N.A.	₹ -4,442	N.A.
Diluted EPS (Rs)	₹ -3.96	₹ 8.04		₹ -11.60
OPM Margin	1.38%	7.94%		-3.27%
Net Margins	-2.10%	3.84%		-7.24%