Tata Motors Posts Smaller Loss Of ₹1,033 Cr In Fourth Quarter

Analysts were factoring in a small net profit in the fourth quarter on price hikes and improved supply situation. 

On Friday, Tata Motors shares close 4.19% lower at ₹371.90 apiece on NSE.

The auto major’s revenue too fell 11% to ₹78,439 crore during the fourth quarter.

Tata Motors expects performance to improve through the year as the China Covid and semiconductor supplies improve and aims to deliver strong EBIT improvement and free cash flows in FY23 to get to near net auto debt free by FY24.

“The demand remains strong despite geopolitical and inflation concerns. The supply situation is gradually improving, whereas commodity inflation is likely to remain at elevated levels,” Tata Motors said in a statement.

For the Jaguar Land Rover (JLR) business, revenue was £4.8 billion in the fourth quarter, down 27% over last year, hit by of the runout of the previous generation Range Rover.

JLR reported a quarterly profit before tax of 9 million pounds ($10.99 million), compared with a profit of 534 million pounds a year earlier. JLR sales remain constrained by the chip shortage while inflation represents an overall increasing headwind.

Passenger vehicle business delivered a comprehensive turnaround in the fourth quarter and demand remained strong despite geopolitical and inflation concerns, Tata Motors said