Tata Motors Q2 Result: Automobile major Tata Motors’s consolidated net loss for the second quarter of the financial year 2022-23 (Q2FY23) narrowed at Rs 945 crore as compared to Rs 4,415.54 crore loss in the same quarter a year ago on the back of improved domestic as well as Jaguar and Land Rover (JLR) business.

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The Tata Group company’s revenue jumped by 29.7 per cent year-on-year to Rs 79,611.37 crore in the July-September quarter of FY23 as against Rs 61,378.82 in a year ago quarter, the company said in its regulatory filing today.

With respect to JLR, Tata Motors said, “Revenue was £5.3 billion in Q2 FY23, up 36% YoY from Q2 FY22 reflecting strong model mix and pricing with wholesale volumes (excluding China JV) of 75,307 up 17.6% year-on-year and 4.9% on the prior quarter.”

On the overall outlook, Tata Motors noted that the demand continues to remain strong, however, it will remain a key monitorable in wake of global uncertainties. Improving chip supply and cooling commodity prices will aid revenue and margins recovery and hence aim to deliver strong improvements in EBIT and free cash flows from the second half of FY23, it added.

While the company on JLR outlook said, “Jaguar Land Rover is continuing to focus on signing long-term partnership agreements with chip suppliers which is improving visibility of future chip supply.”

“Production and sales volumes are expected to improve with positive profit margins and cashflow expected in the second half of FY23 and free cashflow is expected to be near breakeven for the full financial year,” Tata Motors added.

Shares of Tata Motors closed flat with negative bias on Wednesday at Rs 433 per share on the BSE as against 0.25 per cent fall in the S&P BSE Sensex.

Tata Motors Consolidated Q2 Highlights

EBITDA at 9.7% (+ 130 bps), EBIT at 2.4% ( +390 bps)

JLR Revenue £ 5.3b, up 36%, EBITDA at 10.3% (+300 bps), EBIT at 1.0% (+570 bps)

Tata CV Revenue ₹ 16.4KCr, up 35.5%, EBITDA at 5.0% (+180 bps), EBIT at 2.3% (+260 bps)

Tata PV Revenue ₹ 12.5 KCr, up 71.0%, EBITDA at 5.4% (-70 bps), EBIT at 0.4% (+200 bps)