Tata Motors on May 12, 2023, released its March quarter numbers. The auto major reported a consolidated profit of Rs 5,408 crore for the quarter under review against a loss of Rs 1,033 crore in the year-ago period. The company also said that its board of directors has recommended a final dividend of Rs 2 per ordinary share (100 per cent of Face Value) and Rs 2.1 per share for DVR shareholders subject to approval by the shareholders at the annual general meeting (AGM). This is the first dividend announcement by the company after 7 years. The last time the auto company had announced a dividend was in FY16.  

Total revenue from operations stood at Rs 10,5932.35 crore, up 35 per cent against Rs 78,439.06 crore in the year-ago period. 

The top line and bottom line beat analysts' expectations. ZEE Business Research had projected the Tata Group company to post a consolidated net profit of Rs 2,550 crore. The company had posted an exceptional loss of Rs 714 crore last year. Tata Motors Q4FY23 revenue was expected to rise by 23.7 per cent to Rs 97,000 crore YoY against Rs 78,439 crore in the year-ago period. Margins were expected to improve to 11.5 per cent from 11.1 per cent on a YoY basis.

"Tata Motors Consolidated: Q4FY23 was one of the strongest quarters for TML Group with consolidated revenues at Rs 105.9K crore, EBITDA at Rs 14.1K crore, PBT (bei) at Rs 5.0K crore and net auto debt reduction of Rs 13.8K crore. Volumes continued to improve on strong India demand and better supplies at JLR. Pricing actions and a richer mix led to improved average selling prices (ASPs) and higher revenue growth. Easing inflation, better mix, pricing actions and favourable operating leverage resulted in strong improvements in margins and profits," the company said in its earnings release. 

In FY23, the business recorded an all-time high revenue of Rs 346.0K crore and an EBITDA of Rs 37.0K crore and a PBT (bei) of Rs 1.5K cr. The India business net debt was the lowest in 15 years at Rs 6.2K crore, the company added.

PB Balaji, Group Chief Financial Officer, Tata Motors said: “The year ended on a strong note with all automotive verticals delivering robust performances leading to multiple all-time high achievements. The distinct strategy employed by each business is delivering, in unison, leading to a sharp improvement in overall results. We remain confident in growth with cash flow generation, to achieve our stated goals”

Jaguar Land Rover Highlights

Source: Company's earnings release

Commenting on JLR's results, Adrian Mardell, Jaguar Land Rover’s Interim Chief Executive Officer, said: “JLR delivered a strong set of results for the fourth quarter. We increased production and delivered revenue, profit, free cash flow and wholesale growth as chip supply continued to improve. For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6 per cent and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3 billion. With the collective strength of our people, we will continue to deliver our Reimagine strategy. Demand for our exceptional modern luxury vehicles remains strong and with a pipeline of ultra-desirable electrified models on the horizon, I am excited and confident for our future”.

EXPERT TAKE | Rohan Mehta- Founder and Portfolio Manager at Turtle Wealth- a SEBI-registered PMS

Tata Motors has managed to again surprise the market by posting a profit of 5,407 crore - above the street’s expectations. FY23 was a good year for the company driven by multiple new product launches, infra push by the government, a strong demand environment and a positive recovery of the CV passenger set. This has led the firm to end India's business net debt at the lowest levels in 15 years along with all-time high revenue, PAT & EBITDA. This has aided the company to declare dividends for the first time since 2016. JLR also has delivered a good set of numbers, driven by improvement in chip supply. The company is hopeful for further improvement in the chip supply and demand environment. We are watchful that the current growth sustains and only goes north in the coming quarters.