Tata Motors Q1 FY2023 Final Results: Rise in Revenue of 8.3 Percent

Tata Passenger Vehicles, and Commercial Vehicles record over 100% revenue growth over Q1 FY2022. There was a decline in JLR's Revenue.

An 8.3% rise in consolidated sales over the same period the previous year was reported in Tata Motors' consolidated financial statements for the first quarter of FY 2023. With revenue growth above 100%, Tata Motor's Passenger Vehicles and Commercial Vehicles verticals both demonstrated appreciable gains over Q1 FY2022. In contrast, Q1 revenue for Jaguar Land Rover decreased by a little under 11% from the same period last year.

Regarding market performance, the domestic market had over 100% sales increase in Q1 for both Tata Motors' PV and CV businesses. Revenue for Tata Motors' passenger vehicle division increased 122 percent to Rs 11,600 crore, a noteworthy increase year over year. Profit before tax was at breakeven while earnings before interest and taxes also increased by 750 basis points. Sales of EVs increased significantly by 444 percent to 9,300 units in the first quarter, according to the business, which also recorded a 132 percent increase in domestic retail sales.

Shailesh Chandra, MD of Tata Motors Passenger Vehicles Ltd & Tata Passenger Electric Mobility Limited, while commenting on the PV brand's performance said, "Demand for passenger vehicles continued to stay strong in Q1 FY23 even as the supply side remained moderately impacted. Overcoming all challenges, Tata Motors consistently set new sales records every month in a passenger vehicle to record the highest ever wholesales and production of ~130,000 vehicles, twice as compared to Q1FY22. Electric vehicle sales too scaled new peaks month-on-month to deliver over 440% growth in Q1 FY23 versus Q1 FY22."

In the first quarter of FY 2023, Tata recorded a 107 percent increase in income from commercial vehicles, with earnings reaching Rs 16,300 crore. EBIT increased 690 basis points as well. However, overall revenue was less than what the business recorded for Q4 FY2022. According to Tata, its CV global wholesales increased by 100% to over 1 lakh units. 90,500 units were sold domestically during the quarter, up 119 percent from the same period last year.

The company anticipated that its market share, which is currently 42.5 percent in the CV market, will increase in the upcoming quarter. The company claimed that increased activity in the agricultural, e-commerce, mining, and road building industries had raised the demand for its range of CVs, while the need for buses had increased as schools had reopened.

Girish Wagh, Executive Director Tata Motors Ltd, while commenting on the CV division's performance said, "The CV industry continued to witness rising demand across all segments led by a reviving economy. With the sequential easing of semiconductor shortage and our ramp-up agility, Tata Motors delivered a strong quarter with sales of 1,01,113 units registering 100% growth versus Q1 FY22. During Q1 FY23, we marked a significant leap forward in our commitment to promoting sustainable mobility with the delivery of ~100 e-buses and the successful launch of the Ace EV, which provides a green and smart transport solution for a wide variety of intra-city applications. We also signed a strategic Memorandum of Understanding with leading e-commerce companies and logistics service providers to deliver 39,000 units of the Ace EV along with its enabling ecosystem. Furthermore, we also received a letter of allocation of 1500 e-buses from Delhi Transport Corporation, as part of the larger entitled order of 5000 e-buses, from the recently won CESL tender.”