Auto major Tata Motors has reported a net loss of ₹1,516 crore for the quarter ended December 31, 2021, which is narrower when compared with ₹2,906 crore reported in the last year period.
The company had reported a massive loss of ₹4,441 crore in the September quarter.
Revenue from operations came in at ₹72,229 crore in the period under review, down over 4% as against ₹75,653 crore clocked in the last year period.
On a sequential basis, Tata Motors revenue rose 17% from ₹61,378 crore posted in the September quarter.
On Monday, Tata Motors scrip rose 4.06% at ₹517 on NSE.
Automakers worldwide have been roiled by the chip shortage, along with supply chain disruptions, Covid-19 restrictions and rising raw material prices after a short-lived recovery towards the end of 2020.
JLR sales remained constrained by chip shortages with retail sales of 80,126 vehicles, down 37.6% over the same quarter last year.
For the third quarter, JLR revenue came in £4.7 billion, up 22% on a sequential basis, while EBIT margin was at 1.4%.
Tata Motors said the chip supply situation is gradually improving with production volumes of 72,184 units up 41% over previous September quarter and wholesales of 69,182 units up 8% quarter-on-quarter.
India's leading automaker expects the demand to remain strong despite near term concerns from Omicron spread.
“The semiconductor supply situation is improving gradually whilst inflation worries persist," Tata Motors said in a filing.
Free cash flow was positive at £164 million for the quarter under review, demonstrating the progress JLR made in reducing the breakeven point in the business through mix optimisation and cost efficiencies, Tata Motors said.
“Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles. The global order book is at record levels and has grown an incredible 30,000 units for the New Range Rover before deliveries even start this Quarter. We continue to execute our Reimagine strategy to realise the full potential of the business and create the next generation of the most desirable luxury vehicles for the most discerning of customers," said JLR CEO Thierry Bolloré.
Tata Motors India operations showed revenue improvement as compared to the year ago period, however commodity inflation impacted the margins. As a result, TML reported negative EBIT of 1.7% and pre-tax loss (before exceptional items) of ₹800 cr for the third quarter.
PV business continued its turnaround journey and strengthened its double-digit market share with highest sales in any calendar year since inception. EV sales witnessed a new peak of 5,592 units in Q3 FY22.
"Looking ahead, we expect the demand for commercial, passenger and electric vehicles to sustain even as concerns related to supply of semiconductors, high input costs and rising instances of Covid keep the overall situation fluid. We will remain agile, address supply bottlenecks proactively, drive our savings program harder, take prudent pricing actions while continuing to make good progress in our future-fit initiatives of transforming customer experience digitally and strengthening our lead in sustainable mobility," said Girish Wagh, executive director of Tata Motors
