Tata Motors Ltd - 500570 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, attached is the schedule of meeting with the Analyst / Institutional Investor on May 25, 2021.
Jaguar Land Rover has an order backlog of 100,000, 12 months wait on models
About 60% of the backlog originate from the UK and Europe, followed by China and the US. Shortage of semiconductors one of the primary reasons behind the crunch. It has started hitting the production of JLR's plug-in hybrid electric vehicles, too. Tata Motors Ltd - 500570 - Compliances-Reg.24(A)-Annual Secretarial Compliance
Pursuant to Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read alongwith CIR/CFD/CMD1/27/2019 dated February 8, 2019, please find enclosed the Annual Secretarial Compliance Report of the Company issued by Mr. P.N. Parikh of Parikh & Associates, Practicing Company Secretaries for the financial year 2020-21.
Tata Motors takes a hit again due to a one-time impairment charge in Q4
Tata Motors’ (TML) stock price zoomed 5% after the company released Jaguar Land Rover (JLR) retail sales numbers on April 13, 2021. JLR’s Q4 FY21 retail sales rose 12.4% YoY and domestic business reported a 94% YoY jump in volumes, the street was expecting continuation of December quarter growth momentum. The stock price closed 3.5% higher before the March 2021 quarter results were announced. But after the results were out, Tata Motors’ stock slid 5% as the company reported a consolidated loss of Rs 7,600 crore in the quarter. For Tata Motors, March 2020 quarter was adversely impacted by Covid-19 with 35% YoY decline in its global wholesale volumes. Thus on a small base with strong volume growth in the March 2021 quarter, all parameters were expected to be on a strong footing. Revenues came in at Rs 88,628 crore in quarter ended March 2021 compared to Rs 62,493 crore, a year ago, rising 42% YoY. Higher volumes and cost cutting initiatives by the management led to strong operating margins of 15.1% in March 2021 quarter (vs 1.1% YoY). But there was a sequential decline in margin of 95 basis points (bps) mainly due to an adverse product mix. Operating profit came in at Rs 13,374 crore rising 19 times YoY. So, with such strong operational performance, let’s break down the March quarter numbers to find out what spoiled the party for Tata Motors. Quick Takes: Exceptional charge of 1.5 billion pounds (Rs 15,466 crore) will have an impact on FY22 JLR cash flows but will be contained within the break-even position Consolidated net debt as on March 31, 2021 stands at Rs 40,900 crore and has declined 15% YoY in line with the company’s plan to cut net debt to zero by FY24 Semiconductor chip shortage had curtailed production to the tune of 7,000 units in Q4 FY21 and chip shortage will continue impact operation in FY22 Due to semiconductor chip shortage and Covid-19 impact, JLR management has given conservative guidance of 4% EBIT in FY22 In the passenger vehicle segment, the company hiked prices by 1.6% in Q4 FY21 and 1.8% in May 2021, while price for commercial vehicles were hiked by 1.5% in Jan 2021 and 2.5% in April 1, 2021 across all models Tata’s love affair with JLR The love for cars never gets old. And for Ratan Tata, this love culminated with the acquisition of Jaguar Land Rover in June 2008. Tata Group acquired JLR for $2.3 billion. TML’s stock price moves in tandem with JLR’s sales performance which contributes roughly 80% to the revenue mix and 50% to volumes. The British automaker faced headwinds due to slowing China growth, declining diesel vehicle demand in Europe and Brexit woes. After growing strongly at a CAGR of 14% from 2008-18, JLR retail numbers declined 6% in FY19 and 12% in FY20. With the onset of Covid, the June 2021 quarter was the worst hit with retail volumes declining 42% YoY. But by December 2020 recovery was visible and March 2021 quarter saw double-digit volume growth. In the March 2021 quarter, JLR’s revenues came in at 6.5 billion pounds, rising 20% YoY supported by higher sales in China and North America rising 127% and 10% YoY, respectively. Rest of the geographies reported lower growth. UK revenues fell 7%, Europe by 5% and overseas markets by 10% YoY. In rupee terms JLR revenues increased 30% YoY and 13% sequentially in the March 2021 quarter. Significant growth in China and skewed volumes towards Land Rover led to higher EBIT margins, which expanded by 10.7 percentage points YoY reported at 7.5% in the quarter ended March 2021. JLR’s free cash flow was positive for the third consecutive quarter, rising 30% QoQ to 729 million pounds. Range Rover volumes grew 2% YoY while Discovery’s volumes grew 2% and Jaguar’s fell 17%. The recently launched Land Rover Defender’s, volumes came in at 17,000 units vs 200 units, a year ago. Adrian Mardell, CFO, JLR said that the company has a robust order book of 1 lakh customers with more than 20% pertaining to the Defender. The company has also reduced its cash flow break-even units from a high of 6 lakh to 4 lakh by the end of FY21. But what led to TML’s consolidated loss was an exceptional charge of 1.5 billion pounds recognized by JLR owing to a one-time non-cash write down of 0.95 billion pounds and restructuring costs of 0.57 billion pounds. The exceptional charge was due to discontinuation of two products which did not fit within its ‘Reimagine strategy’ unveiled on February 26, 2021. PB Balaji, Group CFO at Tata Motors said that these write downs would help JLR on a strategic perspective to fully move into electrification mode. The company is going to drive towards complete electrification by 2030, launching six Land Rover models in pure electric vehicle (EV) form in the next five years and reducing its net debt to zero by FY24. The management said that Covid-19 and the semiconductor chip shortage issue will have an impact on production. JLR temporarily shut its Castle Bromwich and Halewood manufacturing plants in the UK in April 2021 Passenger vehicle business outperforms, gains market share TML’s standalone business is its passenger vehicle (PV) and commercial vehicle (CV) business which comprised 22% of its consolidated revenues in March 2021 quarter. After Kia Motors, TML reported the highest growth in the number of units sold in FY21. In the March 2021 quarter, volumes jumped 90% YoY, while revenues increased 106% YoY to Rs. 20,000 crore and EBIT expanded 19 percentage points YoY. In the CV segment (volumes up 56% YoY) recovery was led by medium & heavy commercial vehicles (M&HCV;) and intermediate and light commercial vehicles (ILCV) segments due to higher demand from infrastructure, mining and e-commerce. In Q4 FY21, PV segment recorded highest sales (162% YoY) in 34 quarters driven by its new ‘forever portfolio’. The company is the market leader in the nascent electric PV sector propelled by robust performance of its Nexon EV which has 71.2% market share in the EV space. Net profit of Rs 1,645 crore was reported in March 2021 quarter. Over the past few years, there has been a strong turnaround in the PV business aided by a slew of successful product launches like the Tiago, Tigor, Harrier, Hexa and the most recent, Nexon EV and Altroz. TML embarked on the path of achieving double-digit market share as outlined by Tata Sons Chairman N Chandrasekaran in 2018. PV market share has increased by 250 bps since 2018 to 8.2% in FY21. But it's in the CV segment that the company has lost considerable market share over the past few years. From a high of 60% in 2010, down to 42% in FY21 losing out to tough competitors Mahindra & Mahindra Ashok Leyland and Bharat Benz. After reporting stellar performance throughout FY21, Q1 FY22 is looking tough with a 40% volume decline in April. Shailesh Chandra, President, PV and EV business at Tata Motors said that business in May was 20% lower than April, with all major auto clusters impacted by the second Covid-19 wave of infections. Lockdowns, semiconductor chip shortage and rise in cost of raw materials will be the major issues impacting Q1 FY22 performance. Chandra also indicated that though the rise in precious metals (raw material) is linked to international markets, steel prices are linked to both international and domestic auto demand. TML management expects growth to return around the second half of FY22. The company has earmarked a capex plan of Rs 3,000-3,500 crore for FY22. Work in progress for JLR and TML While Maruti Suzuki is struggling in the EV segment, TML is the market leader with its Nexon EV. TML’s long drawn aspirational target of double-digit market share is also expected to be fulfilled with the launch of ‘Hornbill’, a premium hatchback, in CY 2021. While the PV turnaround is moving along, the company is also looking for a strategic alliance for its PV segment, to allow it to access capital, technology and architectures from other original equipment manufacturers. Though the company refreshed its portfolio resulting in strong FY21 numbers, PV business made heavy losses, reporting negative EBIT for the past three years. Amid the pandemic, the highly competitive Indian PV sector will be even more difficult to manoeuvre with greater push towards electrification and strict emission norms So, it’s work in progress for TML in all three directions, turning around the PV business, finding a strategic partner and capturing market share in the CV segment. In the premium luxury car segment, it is not just looks that make heads turn. EV is the future of the global car Industry. Audi e-Tron, Mercedes-Benz EQS, Porsche Taycan are all going to be launched in 2021, and also the most awaited Tesla Model 3. JLR is also taking the electrification route. 12 of its 13 nameplates are electrified and electrification of JLR brands is at the heart of the reimagine strategy. The company is going to launch six Land Rover models in pure EV form in the next five years. JLR will be a complete electric brand by the end of the decade, as UK government policy pushes carmakers away from oil and diesel. To fulfil this agenda, a capex of 2.5 billion pounds each in FY22, FY24 and 3 billion pounds in FY26 has already been earmarked. JLR is also targeting an EBIT margin of 10% and revenue base of 30 billion pounds by FY26. With Covid haze getting clear in the next six months, JLR performance in its key markets will be on investor’s watchlist.
Jaguar CEO upbeat about luxury e-vehicles, says Tesla in lower segment
The CEO of Tata Motors-owned JLR says Tesla started with high-end e-cars but now the Elon Musk-led company is in the mid-premium segment, leaving the road clear for luxury brand Jaguar's transition to electric vehicles TATA MOTORS LTD. - 500570 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Pursuant to Regulation 46 (2)(ao) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we hereby inform you that the audio call recording of the Company's Analyst Call to discuss the Annual Results for FY2021 is available on the Company's website. The link to access the said audio recording is https://www.tatamotors.com/wpcontent/uploads/2021/05/18052021/tata-motors-group-analyst-call-recording-fy21.mp3/
Tata Motors Q4 leaves Street with mixed feelings
Analysts expect near-term challenge for arm JLR; also cite Covid hit on auto co
Covid: Tata Motors extends free service, warranty period on CVs by 1 month
Tata Motors said it has extended the warranty and free service period by one month for those commercial vehicle customers whose tenures are due between April 1 and June 30 S&P; revises outlook on Tata Motors to stable on improving underlying demand
S & P Global Ratings has affirmed B ratings on Tata Motors and revised outlook to stable on improving underlying demand.S & P said the company's sales for the fourth quarter of fiscal 2021 indicate a material improvement in underlying demand for both commercial vehicles and passenger cars.The commercial vehicle business reported its strongest quarterly sales since fiscal 2019 while the passenger car business continued to gain market share.The passenger car business also turned EBITDA positive in fiscal 2021 and EBITDA margin is likely to improve further to mid-single-digit level in fiscal 2022."Although the second wave of Covid-19 infections has increased risks around these estimates, our base case assumes operational disruptions will be mainly in the first quarter of fiscal 2022," said S & P."We anticipate earnings will recover in the rest of fiscal 2022 as restrictions ease, similar to what we saw after the first wave in fiscal 2021."The agency estimates earnings at Tata Earnings Call for Q4FY21 of Tata Motors
Conference Call with Tata Motors Management and Analysts on Q4FY21 Performance and Outlook. Listen to the full earnings transcript.