Tata Motors - A difficult drive in challenging terrain

Tata Motors : A difficult drive in challenging terrain

Tata Motors’ FY2022 annual report highlights (i) weak performance with an 18.8% decline in Ebitda to Rs 248 bn, led by JLR; (ii) rising working capital requirements leading to a 51% decline in reported operating cash flows to Rs 143 bn despite a Rs 19 bn support from increased acceptances, including vendor financing from related party; (iii) JLR’s pension plan turning overfunded, with cash contribution continuing to exceed expenses recognised; (iv) decline in the capitalisation of product development to 39%; and (v) an increase in hedges for JLR’s CNY-denominated revenues and decline in hedges for EURO-denominated costs.

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Tata CV/PV performance improves Consolidated revenue grew by 11.5% to Rs 2,785 bn, primarily driven by an increase in CV (revenue up 58.0% y-o-y to Rs 523 bn) and PV volumes (revenue up 89.8% y-o-y to `315 bn) and favourable currency translation from the GBP to the INR. This was partially offset by lower sales volumes at JLR (revenue declined by 7.1% to GBP18.3 bn) due to the global chip shortage.