Tata Motors (TMCV) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue reached a record ₹3,45,967 crore, up 24.2% YoY; all three core automotive businesses turned profitable in H2.

• Consolidated profit for the year was ₹2,690 crore versus a loss of ₹11,309 crore; profit attributable to shareholders was ₹2,414 crore versus a loss of ₹11,441 crore.

• Automotive free cash flow was positive at ₹7,840 crore, compared with negative ₹9,472 crore in FY22; vehicle sales rose 24% to 13,35,819 units.

Financial highlights

• Consolidated EBITDA margin was 10.7%, up 110 bps YoY; EBIT margin was 3.6%, up from 0.7%.

• Consolidated PBT was ₹3,058 crore versus a loss of ₹7,003 crore; excluding exceptional items, PBT was ₹1,467 crore versus a loss of ₹6,374 crore.

• Standalone revenue from operations was ₹65,757 crore, up 39%; standalone PAT was ₹2,728 crore versus a loss of ₹1,391 crore.

• Basic EPS was ₹6.29 for ordinary shares and ₹6.39 for 'A' ordinary shares, versus losses per share of ₹29.88 in FY22.

Outlook and guidance

• FY24 total product and other investment spending is expected to be ~₹38,000 crore; businesses are expected to remain largely self-sustaining, with net cash positive targeted by FY25.

• CV outlook targets double-digit EBITDA margins in FY24; demand expectations remain positive, with interest rates, fuel prices, inflation and post-BS VI Phase II pre-buying as near-term headwinds.

• PV plans target market-beating growth, higher EV penetration, positive free cash flow and a path to double-digit EBITDA in coming years; industry growth is expected to moderate in FY24.

• JLR targets FY24 EBIT margin above 6%, free cash flow above £2 billion and net debt below £1 billion; investment spending is expected to rise to ~£3 billion.

• EV demand is expected to rise; FY24 priorities include volume growth, future investment and maintaining healthy unit economics and market competitiveness.