Auto major Tata Motors on Wednesday reported a consolidated net profit of Rs 2,957.7 crore for the third quarter that ended December 31, 2022, on increased sales.

In the corresponding quarter last year, the company posted a net loss of Rs 1,516 crore. CNBC-TV18 Polls had predicted a profit of Rs 875 crore for the quarter under review.

The consolidated total income stood at Rs 88,488.5 crore during the period under review, up 22.5 percent against Rs 72,229 crore in the corresponding period of the preceding fiscal.

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At the operating level, EBITDA jumped 52.9 percent to Rs 10,820.2 crore in the third quarter of this fiscal over Rs 7,078 crore in the corresponding period in the previous fiscal.

EBITDA margin stood at 10 percent in the reporting quarter as compared to 9.4 percent in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation and amortization.

Jaguar Land Rover (JLR)

The company delivered on its plans and achieved positive free cash flow and profitability in the quarter as supplies improved. Revenues were £6.0 billion, up 28 percent against the corresponding period of the preceding fiscal and up 15 percent sequentially reflecting better supplies, a strong model mix, and pricing.

Profit before tax in the quarter was £265 million, up from a loss of £9 million a year ago with a positive EBIT margin of 3.7 percent, up from 1.4 percent in the third quarter of last fiscal.

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The higher profitability reflects increased wholesale volumes with favourable mix, pricing, and foreign exchange offset partially by higher inflation and supplier claims largely related to constrained volumes.

Adrian Mardell, JLR's interim CEO said the company has returned to profit as chip shortages eased in the quarter and production and wholesales increased.

Tata Commercial Vehicles

Tata CV revenues in the quarter were up 22.5 percent against Q3 FY22 at Rs 16.9 lakh crore. The third quarter EBITDA margins were 8.4 percent (+580 bps YoY) and EBIT margins were at 5.9 percent (+ 650 bps y-o-y) led by better mix, higher realisations, cost savings, and softened commodity prices.

Girish Wagh, executive director at Tata Motors Ltd said in the third quarter, the CV industry witnessed a steady, overall demand.

Tata Passenger Vehicles

Tata PV revenues were up 37 percent against the corresponding period of the preceding fiscal at Rs 11.7 lakh crore reflecting higher volumes and realizations.

EBITDA margins were 6.9 percent (+370 bps YoY) and EBIT margins were at 1.5 percent (+510 bps) YoY driven by improved volumes and mix, higher realizations, softening commodities and certain one-offs. The business was PBT (bei) positive at Rs 0.3 lakh crore as compared to a loss of Rs 0.3 lakh crore in Q3 FY22.

Outlook

Tata Motors said it remains cautiously optimistic on the demand situation despite global uncertainties, "We will remain vigilant on demand and our continued focus on profitable growth, improving semiconductor supplies and stable commodity prices will aid revenue growth, margin improvement and positive cash delivery in Q4 FY23."

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The company said the finance costs increased by Rs 275 crore to Rs 2,676 crore during the third quarter as compared to Rs 2,401 crore in the corresponding period of the preceding fiscal due to higher gross borrowings.

For the quarter, net profit from joint ventures and associates amounted to Rs 103 crore compared with a loss of Rs 113 crore in the third quarter. Other income (excluding grants) was Rs 455 crore in the third quarter versus Rs 197 crore in the corresponding period of the preceding fiscal.

Free cash flow (automotive) in the quarter, was positive at Rs 5.3 lakh crore (as compared to Rs 4.0 lakh crore in Q3 FY22) owing to improvement in cash profits and working capital.

(Edited by : Shoma Bhattacharjee)

First Published:Jan 25, 2023 5:15 PM IST