Tata Motors reports net profit of Rs 5,408 crore in Q4, revenue surges 35%

Tata Motors (TML) has recorded a net profit of Rs.5,408 crore in the fourth quarter of 2022-23 against a net loss of Rs.1,033 crore in the corresponding quarter in FY22, up 35 per cent year-on-year (YoY). ) Consolidated revenue growth to Rs.1.059 crore.

Shares of TML closed at 515.6 rupees on Friday, close to its 52-week high of 520 rupees. And the company reported its highest annual domestic sales ever, up 46 percent during fiscal year 2022.

The Board of Directors of the company has recommended a final dividend of Rs 2 per ordinary share. The fourth quarter was one of the strongest for the company with consolidated revenue beating Bloomberg’s estimate of 1.02 trillion rupees, EBITDA of 1.41 trillion rupees, and a reduction in net auto debt by Rs. 13,800 crore. In FY23, the company posted an all-time high revenue of Rs. 3.46 crore with Ebitda of Rs. 37,000 crore and Pre-tax profit of Rs. 1,500 crore.

India’s net business debt was the lowest in 15 years at Rs.6,200 crore. Jaguar Land Rover (JLR) revenue grew 49 per cent year-on-year in the quarter to £7.1 billion, while full-year revenue rose 25 per cent to £22.8 billion.

During the quarter, the number of units sold at JLR increased 24% to 94,649 units while this year it increased 9% to 321,362 units. JLR has an order book of 200,000 units. The company said it was targeting Ebit’s margin of more than 6 percent in fiscal 2014 for JLR’s business.

She added, “Investment spending is expected to rise to around £3 billion in the fiscal year, but free cash flow is expected to exceed £2 billion, and net debt is expected to fall below £1 billion by fiscal year 24.” .

TML has announced a £15 billion investment over five years in JLR’s electrification and digital transformation.

For the commercial vehicle business in the fourth quarter, it posted a 15% growth in revenue to Rs 21,200 crore in the fourth quarter despite a 3% drop in wholesale sales. TML said that the pre-purchase in the fourth quarter of fiscal year 23 in anticipation of higher prices after the second stage of BS VI will have a near-term impact on demand.

TML’s passenger car business grew 15.3% in Q4 (Rs. 12,100 crores) and 52% in FY23 (Rs. 47,900 crores).

Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said: “Tata Motors has passed the milestone of 50,000 annual sales of electric vehicles, an all-time high, recording a growth rate of 154 per cent during the financial year. 22″.

operating at 90% capacity; There are no plans for a new plant yet. Tata Motors Group Chief Financial Officer P. Balaji told reporters that the company is planning a capital expenditure of Rs. 38,000 crore in FY24. Of this, around Rs. 30,000 crore will be in JLR, and the rest is in the India business.

The bulk of the capital expenditures will go towards product development, platforms and de-throttling capabilities. Last year, TML made a capital expenditure of around Rs 30,000 crore. Of this amount about Rs 23,000 crore was to JLR.

He added that the company is operating at nearly 90 percent of capacity, making 40,000-45,000 units a month. The Ford-Sanand plant integration process has begun, but will take 9-12 months to achieve full integration.

The second Sanand plant will add 30,000 to 35,000 units per month. “We are not looking to create any capacity at this time,” he said. Balaji also said the worst of the semiconductor crisis “was behind us”.