Carmaker Tata Motors has reported a 67 percent year-on-year (YoY) growth in consolidated profit at Rs 2,906.45 crore for the quarter ended December 2020 driven by robust volumes, improved product mix and cost-saving measures. Profit in the year-ago period was Rs 1,738.3 crore.
Consolidated revenue from operations grew by 5.5 percent YoY to Rs 75,653.8 crore in Q3 FY21.
“Despite pandemic related uncertainties, supply bottlenecks and commodity inflation, we expect to consolidate our gains and end the fiscal year on a strong note. We remain committed to consistent, competitive, cash accretive growth and deleverage the business through the focused execution of our strategy in all our businesses,” Tata Motors said in its BSE filing.
UK-based Jaguar Land Rover, which is owned by Tata Motors, reported profit before tax of 439 million pound in Q3 FY21, surging 263 percent from $121 million pound in the corresponding period.
“I am encouraged by the improved financial performance in this first full quarter as CEO of Jaguar Land Rover. Looking ahead, these challenges continue, including the COVID pandemic and its impact on the global economy, the UK’s new trading relationship with the EU and the significant technological changes taking place in the automotive industry,” Thierry Bolloré, Jaguar Land Rover Chief Executive Officer said.
JLR’s revenue in Q3FY21 declined 6.5 percent to 5,982 million pound compared to corresponding period, with favourable sales mix, cost performance and partial reversal of prior period reserves for emissions and residual values, said the company.
Retail sales fell 9 percent YoY to 1,28,469 vehicles but the same increased 13.1 percent sequentially. “Sales in China were up 20.2 percent on the prior quarter and up 19.1 percent year-on-year. Most other regions also witnessed a sequential recovery though still below prior year,” said the company.
At the operating level, JLR posted a 560 bps year-on-year increase in EBITDA margin at 15.8 percent and 400 bps YoY rise in EBIT margin at 6.4 percent for the quarter ended December 2020.
“Free cash flow in the third quarter was 562 million pound, primarily reflecting the strong PBT and favourable working capital after 675 million pound of investment spending,” Tata Motors said.
On standalone basis (mostly the domestic business including commercial vehicle), Tata Motors posted a loss of Rs 638.04 crore in Q3FY21, narrowing from loss Rs 1,039.51 crore reported in corresponding period, due to better volumes, improved product mix, lower VME and cost savings offset partially by lower proportion of commercial vehicle in total sales, commodity inflation and financing costs.
In same period, revenue increased sharply by 34.9 percent year-on-year to Rs 14,630.6 crore in quarter ended December 2020. “In Q3FY21, wholesales (including exports) increased 18.8 percent to 1,53,480 units YoY. Domestic retails continues to be higher than wholesales in passenger vehicle (PV) due to continued strong demand,” said the company.
The company further said EBIT breakeven was achieved in the quarter improving 710bps over the same quarter previous year. “Free cash flow for the quarter was Rs 2,200 crore, as the company drove the cost and cash savings agenda hard with Rs 2,600 crore delivered in Q3FY21.”
“The auto industry witnessed a strong sales momentum in Q3FY21, driven by the pent-up demand and a steady recovery of the economy. We could leverage the improved demand by a consistent ramp-up of production, addressing supply chain bottlenecks,” Guenter Butschek, CEO and MD at Tata Motors said.
“Due to a strong festive season and a clear preference for personal mobility the PV business posted its highest sales in last 33 quarters. In the CV business the M&HCV and ILCV segments led the overall CV growth of over 48 percent higher domestic sales compared to the previous quarter,” he added.Ecommerce Service in fiverr once check