Tata Motors Announce Consolidated Q2 FY24 Results
Tata Motors Ltd. (TML) announced its results for quarter ending September 30, 2023.
| Consolidated (₹ Cr Ind AS) | Jaguar Land Rover (£m, IFRS) | Tata Commercial Vehicles (₹Cr, Ind AS) | Tata Passenger Vehicles (₹ Cr, Ind AS) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| FY24 | Vs. PY | FY24 | Vs. PY | FY24 | Vs. PY | FY24 | Vs. PY | ||||
| Q2 FY24 | Revenue | 105,128 | 32.1 % | 6,857 | 30.4 % | 20,087 | 22.3% | 12,174 | (3.0)% | ||
| EBITDA (%) | 13.7 | 400 bps | 14.9 | 430 bps | 10.4 | 540 bps | 6.5 | 110 bps | |||
| EBIT (%) | 7.5 | 510 bps | 7.3 | 630 bps | 7.9 | 560 bps | 1.8 | 140 bps | |||
| PBT (bei) | 6,110 | ₹7,883 crs | 442 | £615m | 1,526 | ₹1,234 crs | 296 | ₹129 crs | |||
| H1 FY24 | Revenue | 207,364 | 36.8 % | 13,760 | 42.4 % | 37,078 | 13.4% | 25,013 | 3.8% | ||
| EBITDA (%) | 14.0 | 540 bps | 15.6 | 680 bps | 10.0 | 480 bps | 5.9 | 10 bps | |||
| EBIT (%) | 7.8 | 680 bps | 8.0 | 950 bps | 7.2 | 460 bps | 1.4 | 80 bps | |||
| PBT (bei) | 11,439 | ₹18,175 crs | 877 | £1,574m | 2,462 | ₹1,869 crs | 482 | ₹301 crs | |||
Tata Motors Consolidated:
TML continued its strong performance in Q2 FY24 with revenues at ₹105.1K Cr (up 32.1%), EBITDA at ₹14.4K Cr (up 86.4%) and EBIT of ₹7.8KCr (+₹5.9KCr), as all auto verticals continued their profitable growth trajectory. PBT (bei) improved by ₹7.9KCr to ₹6.1KCr and Net Profit was ₹3.8KCr. In H1 FY24, the business reported strong PBT (bei) of ₹11.4KCr, an improvement of ₹18.2KCr over the previous year. Net Automotive debt reduced to ₹38.7KCr.
JLR revenues improved 30.4% to £6.9b. Strong wholesales and improved mix resulted in EBIT margins of 7.3% (+630bps). CV revenues improved by 22.3% and EBIT improved to 7.9% (+560bps) benefiting from higher realisations, richer mix and favourable commodity prices. PV revenues were marginally down 3.0% impacted by the transition to the new launches while EBIT margins improved by 140 bps to 1.8% due to savings in commodity costs.
Looking Ahead:
We remain optimistic on demand despite external challenges and anticipate a moderate inflationary environment. We aim to deliver a stronger performance in H2, due to a healthy order book at JLR, strong demand for heavy trucks in CV and exciting new generation products in PV. Our financial performance is expected to improve further owing to a richer mix, continued low-break-even in JLR, execution of demand-pull strategy in CV and improving profitability in PV/EV.
PB Balaji, Group Chief Financial Officer, Tata Motors said: “It is pleasing to see all the businesses deliver on their well differentiated plans this quarter. With a strong product pipeline, a seasonally stronger H2 and continued focus on cash accretive growth, we are confident of sustaining this momentum.”
JAGUAR LAND ROVER (JLR)
Highlights
- Revenue of £6.9 billion in Q2 and record first half revenue of £13.8 billion, up 30% and 42% yoy respectively driven by higher wholesales, better mix, cost reductions and investment in demand generation.
- Revenue of £6.9 billion in Q2 and record first half revenue of £13.8 billion, up 30% and 42% yoy respectively driven by higher wholesales, better mix, cost reductions and investment in demand generation.
- PBT (bei) in Q2 FY24 was £442 million, up over £600 million compared to PY. H1 FY24 PBT (bei) of £877m, up over £1.5 billion compared to H1 FY23.
- Free cash flow of £300 million for Q2 FY24 and £751m for H1 FY24, which is JLR’s best H1 cashflow on record.
- Total liquidity was at £5.8 billion including the £1.52 billion undrawn revolving credit facility maturing in March 2026. Net debt reduced to £2.2 billion in Q2, with gross debt of £6.5 billion.
- In mid-October, JLR completed a buyback of c. $400 million equivalent of its outstanding bonds, demonstrating the recent strong financial performance of the company and resulting liquidity.
- The order book remained strong with over 168,000 client orders, with RR, RR Sport and Defender accounting for 77% of the order book.
Reimagine Transformation
- Investment of £15bn over five years to transition to our electric future continues:
- Investing more than £1.4bn over next five years in JLR’s Halewood plant, in Merseyside and Solihull plant, in the West Midlands, UK, to produce next generation electric models
- JLR Nitra plant in Slovakia, also confirmed to build next generation electric vehicles
- £250m investment in JLR Future Energy Lab at Whitley Engineering Centre, Coventry, UK, to develop electric drive units (EDUs) in-house
- Further hiring drive for 300 new technician roles to develop and build next generation EVs at JLR’s West Midlands, UK engineering and manufacturing sites
- JLR partners with Wykes Engineering to develop one of UK’s largest second life battery energy storage schemes.
Financials
JLR continued its strong performance of recent quarters with another set of positive results as supply constraints continue to ease, enabling more vehicles to be delivered to clients. Revenue in Q2 FY24 was £6.9 billion, up 30% vs. Q2 FY23 and flat compared to Q1 FY24, impacted by the planned summer shutdowns. EBIT margin was positive 7.3%, up from 1.0% a year ago, but slightly down from 8.6% in the first quarter. The higher profitability year-on-year reflects favourable volume, mix, pricing, and foreign exchange revaluation offset partially by higher fixed marketing and selling costs.
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