Homegrown auto major Tata Motors on Wednesday reported a consolidated net loss of Rs 5,006.6 crore for the first quarter ended June 30, 2022, mainly due to a tax charge relating to its Jaguar Land Rover (JLR) unit.

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In the same quarter last year, the Mumbai-based carmaker posted a net loss of Rs 4,323 crore.

"The loss was due to a tax charge of Rs 1,098.06 crore (£113 million) incurred at JLR as a result of the inability to recognise UK deferred tax assets arising in the period due to current UK loss profile amounting to Rs 1,487.71 crore (£154 million) and non-recognition of UK deferred tax assets relating to pension and hedging movements in other reserves," the company said.

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Here is a look at the carmaker's June quarter results:

CNBC-TV18 Polls had predicted a loss of Rs 1,299 crore for the quarter under review.

Apart from the revenue, the firm performed poorly on all other metrics. The consolidated revenue from operations stood at Rs 71,935 during the period under review, up 8.3 percent against Rs 66,406 crore in the corresponding period of the preceding financial year.

On a standalone basis, Tata Motors reported a net loss of Rs 181 crore, putting up a better performance from a net loss of Rs 1,321 crore in the year-ago period. Standalone revenue from operations stood at Rs 14,874 crore as against Rs 6,577 crore in the same period a year ago, the company said.

Jaguar Land Rover

JLR's retail sales in Q1FY23 were 78,825 vehicles, broadly flat compared with Q4 FY22 and down 37 percent compared with Q1 FY22. Revenue was £4.4 billion in Q1 FY23, down 7.6 percent from Q4 FY22, impacted by supply challenges including semiconductor shortages, slower than expected ramp-up of the new Range Rover and new Range Rover Sport production, and China lockdowns.

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The customer order book grew further to 200,000 vehicles. The loss before tax in the quarter was £(524) million before a £155 million favourable exceptional pension item. The loss primarily reflects the lower wholesale volumes with a weaker mix, as well as unfavourable inflation (£161) million and currency and commodity revaluation (£236) million year on year.

The EBIT margin was 4.4 percent reflecting the lower volumes and unfavourable mix. Free cash flow was negative in the quarter (£769) million, primarily reflecting (£616) million of unfavourable working capital movements.

Thierry Bolloré, Jaguar Land Rover's CEO said, "Although headwinds from the global semiconductor supply and COVID lockdowns in China have impacted our business performance this quarter, I am pleased to confirm that we have a completely reinforced organisation setup to respond to the semiconductor crisis. This is now starting to recover production growth to achieve greater volumes and will allow us to take advantage of our record order book in the second quarter."

Tata Commercial Vehicles

Tata CV's business witnessed strong volume growth as compared to Q1FY22 (a Covid impacted quarter). The growth in Q1FY23 has been broad-based across regions and segments. For India business, domestic wholesales were at 95,895 vehicles (+124 percent YoY).

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Exports were however at 5,218 vehicles, lower by 22.6 percent affected by the financial crisis in a few export markets. The margin improvement was aided by higher volumes, realizations, and stable commodity prices.

Tata Passenger Vehicles

Tata PVs' business continued its strong momentum with wholesales at 130,351 vehicles, up 101.7 percent vs Q1FY22. Demand for passenger vehicles continued to stay strong in Q1 FY23 even as the supply side remained moderately impacted.

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The SUV portfolio contributed 68 percent of Q1FY23 sales. The margin improvement was led by strong volumes, improved mix, and the impact of higher operating leverage.

Shailesh Chandra, managing director of Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility said, "Demand for passenger vehicles continued to stay strong in Q1 FY23 even as the supply side remained moderately impacted."

"Overcoming all challenges, Tata Motors consistently set new sales records every month in passenger vehicles to record the highest ever wholesales and production of 130,000 vehicles, twice as compared to Q1FY22. Electric vehicle sales too scaled new peaks month-on-month to deliver over 440 percent growth in Q1 FY23 versus Q1 FY22," he added.

The results came after the close of the market hours. The shares were trading flat ahead of the earnings.

First Published:Jul 27, 2022 5:12 PM IST