Tata Motors recently reported its net profit of Rs 5,407.8 crore in Q4, a YoY growth of 35% as compared to Rs 1,032 crore in the same period last year. For the quarter ended March 31, 2023, the company also posted a 35% Year-on-Year jump in consolidated revenue to Rs 105,932 crore.
In an exchange filing, Tata Motors said that the volumes continued to improve better supplies and strong Indian demand at JLR. The exchange filing states, “Pricing actions and a richer mix led to improved ASPs and higher revenue growth. Easing inflation, better mix, pricing actions, and favorable operating leverage resulted in strong improvements in margins and profits.”
The company has also declared a dividend of Rs 2 per equity share and Rs 2.1 per share for DVR shareholders, subject to approval by the shareholders at the AGM.
Tata Motors said that it expects gradual improvements in chip supply to continue during the next fiscal year. The company is targeting to grow wholesales through the year and achieve EBIT margins of over 6% in FY24, despite supply challenges and macro risks.
Investment spending is likely to increase by about £3 billion in the fiscal year, but free cash flow is expected to be less than £2 billion and net debt is expected to reduce to less than £1 billion by FY24, states the official release.
Adrian Mardell, Jaguar Land Rover’s Interim Chief Executive Officer said that “JLR delivered a strong set of results for the fourth quarter. We increased production and delivered revenue, profit, free cash flow, and wholesale growth as chip supply continued to improve. For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6% and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3 billion.”
In an exchange filing, Tata Motors said that the volumes continued to improve better supplies and strong Indian demand at JLR. The exchange filing states, “Pricing actions and a richer mix led to improved ASPs and higher revenue growth. Easing inflation, better mix, pricing actions, and favorable operating leverage resulted in strong improvements in margins and profits.”
The company has also declared a dividend of Rs 2 per equity share and Rs 2.1 per share for DVR shareholders, subject to approval by the shareholders at the AGM.
Tata Motors said that it expects gradual improvements in chip supply to continue during the next fiscal year. The company is targeting to grow wholesales through the year and achieve EBIT margins of over 6% in FY24, despite supply challenges and macro risks.
Investment spending is likely to increase by about £3 billion in the fiscal year, but free cash flow is expected to be less than £2 billion and net debt is expected to reduce to less than £1 billion by FY24, states the official release.
Adrian Mardell, Jaguar Land Rover’s Interim Chief Executive Officer said that “JLR delivered a strong set of results for the fourth quarter. We increased production and delivered revenue, profit, free cash flow, and wholesale growth as chip supply continued to improve. For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6% and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to £3 billion.”
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Further, he added, “Demand for our exceptional modern luxury vehicles remains strong and with a pipeline of ultra-desirable electrified models on the horizon, I am excited and confident for our future.”
During the Q4, JLR wholesales were reported at 94,649 units, up 24% and the full-year wholesales stood at 321,362, up 9% as compared to FY22. Free cash flow for JLR in Q4FY23 of £815 million resulting in £1.3 billion in H2FY23 and £521 million for the full year. Net debt improved to £3.0 billion as of 31 March 2023 with cash of £3.8 billion and liquidity of £5.3 billion (including undrawn £1.52 billion revolving credit facility).