Tata Motors consolidated Q2 net loss widens further to Rs4,415.5 cr

Tata Motors Ltd (TML) on Monday reported consolidated net loss of Rs4,415.5 crore for fiscal second quarter ended 30 September 2021, on the back of rising expenses. The company had registered a net loss of Rs307.26 crore in the corresponding quarter of the previous financial year.

Total revenue from operations for the July-September 2021-22 quarter stood at Rs61,378.8 crore against Rs53,530 crore in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) during the quarter was down 37.7 per cent at Rs4,116.6 crore against Rs6,098.3 crore in Q2 2020-21. EBITDA margin stood at 6.7 per cent in Q2 against 11.4 per cent in Q2 2020-21.
Tata Motors said its finance costs increased by Rs378 crore to Rs2,327 crore during Q2FY’22 compared to the previous fiscal due to higher gross borrowings as compared to Q2’FY21. For the quarter, net profit from joint ventures and associates amounted to Rs 61 crore compared with a Rs36-crore net profit in the previous year quarter.
Other income (excluding grants) stood at Rs249 crore against Rs189 crore in the previous year quarter. Free cash flow (automotive) in the quarter was a negative Rs3.2 lakh crore (against a positive Rs6.7 lakh crore in Q2 FY 21. This included Rs2,000K lakh crore due to working capital unwind.
"Demand remains strong for JLR and India PV while CV demand is improving gradually. Semiconductor issues and commodity inflation will continue to impact the near term and we are doing our best to manage them. The performance is expected to improve gradually starting in H2 as both the supply chain and the pandemic situation improves," the company stated.
"The auto industry witnessed a consistent increase in demand, in sync with the overall growth of the economy and continuing preference for personal mobility. At Tata Motors, we successfully ramped up production by prudently addressing supply-side challenges. During the quarter, we accelerated the sales momentum to increase market share in every segment of commercial vehicles, recorded a decade high sale in passenger vehicles and delivered the highest ever quarterly sales in electric vehicles," Girish Wagh, executive director, Tata Motors Ltd, said.
Jaguar Land Rover (JLR) generated revenue of £3.9 billion and a pre-tax loss of £302 million for the second quarter. Free cash outflow was £664 million, after £484 million of investment spending and £501 million volume-related working capital outflow. 
Retail sales (including that of the China joint venture) stood at 92,710 vehicles, down 18.4 per cent, reflecting the semiconductor shortage and lower retailer inventories. Retail sales were lower in most regions, including North America (-15.6 per cent), China (-6.3 per cent), Europe (-17.0 per cent), and the UK (-47.6 per cent), but were up in the other regions (+10 per cent).
Retail sales of all models were lower YoY except for the new Land Rover Defender, which retailed 16,725 vehicles, up 70.4 per cent YoY, making it JLR’s bestselling model in the quarter. The mix of electrified vehicles reached 66 per cent. 
Tata Motors said that despite the impact of the semiconductor shortage on production and sales, it continues to enjoy strong demand for its products with global retail orders at record levels of more than 125,000 vehicles.