Tata Motors (TMCV) Q4 21/22 earnings summary

Executive summary

• FY22 global wholesales rose 20.4% YoY to 1,086,734 vehicles; revenue increased 11.5% to ₹278,454 crore, while chip shortages and commodity inflation pressured margins.

• Passenger and commercial vehicle demand rebounded strongly, while Jaguar Land Rover volumes fell 16% amid supply constraints; automotive free cash flow was negative for FY22 but positive in H2.

Financial highlights

• Consolidated revenue was ₹278,454 crore, up 11.5% YoY; EBITDA margin was 9.6% versus 12.2%, and EBIT margin was 0.7% versus 2.6%.

• Consolidated net loss was ₹11,309 crore versus ₹13,395 crore in FY21; automotive free cash flow was an outflow of ₹9,472 crore versus an inflow of ₹5,317 crore.

• Excluding exceptional items, consolidated loss before tax was ₹6,448 crore versus profit before tax of ₹2,908 crore in FY21.

• Cash and cash equivalents rose 20.4% to ₹38,159 crore; total debt was ₹139,677 crore, up 2.8% YoY, and net auto debt reached ₹48,679 crore.

Outlook and guidance

• Commercial vehicles target strong margin recovery and profitability in FY23; long-term targets include double-digit EBITDA, positive FCF and capex of 3–4% of revenue.

• Passenger vehicles expect strong margin and profitability improvement in FY23; targets include high-single-digit EBITDA margin within two years, positive FCF and long-term capex of 5–6% of revenue.

• Jaguar Land Rover targets FY23 EBIT margin of 5% and positive FCF above £1bn; medium-term targets are EBIT margin of at least 10% by FY26 and near-zero net debt in FY24.

• FY23 product and other investment spending is expected at ₹32,000 crore; near-zero net automotive debt remains the FY24 goal.