Tata Motors Ltd. said second quarter consolidated net loss narrowed to ₹898.35 crore on account of volume and margin expansion at the Jaguar Land Rover unit, as well as domestic business units. The company had recorded a loss of ₹4,415.54 crore a year earlier.
Total revenue from operations for the quarter ended September 30 increased 29.7% to ₹79,611 crore. JLR revenue grew 36% to £5.3 billion, reflecting ‘strong model mix and pricing’ with wholesale volumes (excluding China JV) of 75,307 up 17.6%, the company said in a statement.
“The wholesale increase was lower than planned, primarily due to a lower-than-expected supply of specialised chips from one supplier which could not be readily re-sourced in the quarter,” P.B. Balaji, chief financial officer, Tata Motors Group, said while flagging this as one of the disappointments during the quarter.
“However, we do expect to see improved performance at JLR, the Commercial Vehicle (CV) and Passenger Vehicle (PV) units during the third and the fourth quarters,” he said.
The CV business registered 15% growth in sales. In India, domestic wholesales climbed 19% to 93,651 vehicles. However, exports were lower by 22% affected by the financial crisis in a few export markets. Domestic retails grew at a higher rate.
“The margin improvement was aided by higher volumes, realisations, although impacted by residual commodity inflation and foreign exchange,” Mr Balaji said.
The PV business continued its ‘strong’ momentum with wholesales growing 69% to 142,755 vehicles, amid strong festival demand and ‘debottlenecking actions’.
However, margin recovery was impacted due to residual commodity inflation and adverse foreign exchange, Mr. Balaji added.
“Demand continues to remain strong; however it will remain a key monitorable in the wake of global uncertainties. Improving chip supply and cooling commodity prices will aid revenue and margins recovery and we hence aim to deliver strong improvements in EBIT and free cash flows in H2 FY23,” he said.
NYSE ADSs to be delisted
On Wednesday Tata Motors announced its intent to voluntarily delist its American Depository Shares (ADS) from the New York Stock Exchange (NYSE) and terminate its ADS programme as the rationale for ADS listing in 2004 in the U.S. “has significantly diminished” with “a considerable increase in liquidity and foreign shareholder participation in the equity stock markets in India.”
The company said it would file a Form 25 on January 13, 2023 to delist its ADS. The last trading of the ADS on NYSE is expected to be January 2023.
Any time prior to six months from the date of termination of the Deposit Agreement, ADS holders may surrender their ADSs in exchange for the underlying ordinary shares of the company. “Please be advised that holders who surrender their ADSs must have, or establish, a DR-type Demat account in India prior to surrendering their ADss to Citibank, N.A.,” Tata Motors said in a filing.
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