Tata Motors (TML) posted a net profit of Rs 5,408 crore in the fourth quarter of 2022-23 as against a net loss of Rs 1,033 crore in the corresponding quarter in FY22, riding on 35 per cent year-on-year (YoY) growth in consolidated revenues to Rs 1.059 trillion.
TML shares closed at Rs 515.6 on the BSE on Friday, close to its 52-week high of Rs 520. The firm recorded its highest ever annual domestic sales, up 46 per cent over FY22.
The company board has recommended a final dividend of Rs 2 per ordinary share. The fourth quarter was one of the strongest for the company with consolidated revenues beating the Bloomberg estimate of Rs 1.02 trillion, earnings before interest, tax, depreciation and amortisation (Ebitda) coming in at Rs 1.41 trillion, and a net auto debt reduction of Rs 13,800 crore. In FY23, the business recorded all-time high revenues of Rs 3.46 trillion with an Ebitda of Rs 37,000 crore and profit before tax of Rs 1,500 crore.
The net debt of the India business was the lowest in 15 years at Rs 6,200 crore. Jaguar Land Rover (JLR) revenues grew 49 per cent YoY during the quarter to £7.1 billion, while those for the full year were up 25 per cent to £22.8 billion.
During the quarter, the number of JLR units sold was up 24 per cent to 94,649 units while that for the full year was up 9 per cent to 321,362 units. JLR has an order book of 200,000 units. The company said it was targeting an Ebit margin of over 6 per cent in FY24 for the JLR business.
“Investment spending is expected to increase to about £3 billion in the fiscal year, but free cash flow is expected to be over £2 billion and net debt is expected to reduce to less than one bn pounds by FY24,” it added.
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TML has announced an investment of £15 billion over five years in JLR’s electrification and digital transformation.
As for the commercial-vehicle business in Q4, it posted 15 per cent growth in revenues to Rs 21,200 crore in Q4 despite a 3 per cent decline in wholesales. TML said advance buying in Q4 FY23 in anticipation of price increases after BS VI Phase II would have a near-term impact on demand.
TML’s passenger-vehicle business grew 15.3 per cent in Q4 (Rs 12,100 crore) and 52 per cent in FY23 (Rs 47,900 crore).
“Tata Motors crossed the significant landmark of 50,000 annual sales in electric vehicles, its highest ever, to post a growth rate of 154 per cent over FY22,” said Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
Operating at 90% capacity; no plans for new plant yet. Tata Motors Group Chief Financial Officer P Balaji told reporters the company planned a capex of Rs 38,000 crore in FY24. Of this, around Rs 30,000 crore will be in JLR, and the rest in the India business.
The bulk of the capex will be for developing products, platforms, and de-bottlenecking capacities. Last year, TML had made a capex of about Rs 30,000 crore. Of this around Rs 23,000 crore was for JLR.
He added the company was operating at almost 90 per cent of its capacity, making 40,000-45000 units a month. The process of integration of the Ford-Sanand plant has begun, but will take 9-12 months to achieve full integration.
The second Sanand plant will add another 30,000-35,000 units a month. “We are not looking at any capacity creation at the moment,” he said. Balaji also said the worst of the semiconductor crisis “was behind us”.