Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY24 Earnings Presentation
49 slides from Tata Motors's earnings presentation, Nov 3, 2023
Slide 1: Tata Motors Group Results for quarter ended September 30, 2023
LOGO Tata Motors Group Results for quarter ended September 30, 2023
Slide 2: Safe harbour statement
LOGO Safe harbour statement Statements in this presentation describing the objectives, projections, estimates and expectations of Tata Motors Limited (the “Group”), Jaguar Land Rover Automotive plc (“JLR ”) and its business segments may be “forward-looking statements” within the meaning of applicabl
Slide 3: Product and other highlights
Product and other highlights LOGO Portfolio of CNG products; Twin-cylinder technology, no compromise on boot space Major facelifts of Nexon, Nexon.EV, Harrier and Safari Supplied 1000 e-Buses till date and delivered first Hydrogen cell powered bus JLR opens new state-of-the-art future energy lab JLR
Slide 4: Q2: Revenue ₹105.1KCr, EBITDA 13.7%, PBT(bei) ₹6.1KCr
Q2: Revenue ₹ 105.1KCr, EBITDA 13.7%, PBT(bei) ₹ 6.1KCr LOGO Business continues its profitable, cash accretive growth momentum (Bar_Chart_1) (Bar_Chart_2) (Bar_Chart_3) (Bar_Chart_4) (Bar_Chart_5) (Bar_Chart_6) (Bar_Chart_7) (Bar_Chart_8)
Slide 5: EBIT 7.5%; Net Auto Debt reduces to ₹38.7 KCr
EBIT 7.5%; Net Auto Debt reduces to ₹ 38.7 KCr LOGO All auto verticals continue their growth trajectory Q2 FY24 | Consolidated | IndAS (Bar_Chart_1) (Bar_Chart_2) (Bar_Chart_3) Entities ₹KCr TML India(1) 7.6 JLR 22.8 TML Holdings 9.5 Smart City Mobility business(2) 0.3 Others and adj (1.5) Total 38.
Slide 6: Update on Tata Technologies – Pre-IPO deal signed
Update on Tata Technologies – Pre-IPO deal signed Furthers TML’s deleveraging agenda LOGO TML has entered into Share Purchase Agreement to sell 9.9% stake in Tata Technologies Ltd (TTL) for a consideration of INR 1,613.7 crore. Ascribes an equity valuation of INR 16,300 Cr (~US$ 2.0 billion) for TTL
Slide 7: Acquisition of ~27% stake in Freight Tiger
Acquisition of ~27% stake in Freight Tiger Fleet Edge + Freight Tiger to provide an end-to-end solution by integrating the truck and trip eco-systems LOGO Fleet Edge is on 4.8 lakhs trucks 10m+ trips being facilitated by Freight Tiger (annualized run-rate) 1 – McKinsey Global Institute The opportuni
Slide 8: Avinya will be underpinned by JLR's EMA platform
Avinya will be underpinned by JLR’s EMA platform LOGO TPEM and JLR announce strategic collaboration EMA platform to underpin the next generation of ‘pure electric’ mid-sized SUVs of JLR to be launched from 2025 onwards “Avinya” - TPEM’s ‘premium pure electric’ vehicle series with an uncompromising v
Slide 9: Jaguar Land Rover Automotive PLC Results for the quarter ended September 30, 2023
LOGO JAGUAR LAND ROVER AUTOMOTIVE PLC Results for the quarter ended September 30, 2023 RICHARD MOLYNEUX Chief Financial Officer
Slide 10: Q2 Revenue £6.9b, EBIT 7.3%, PBT(bei) £442m
Q2 Revenue £6.9b, EBIT 7.3%, PBT(bei) £442m LOGO Strong Q2 & H1 performance compared to prior year with all H1 metrics significantly higher Q2 FY24 | Jaguar Land Rover | IFRS, £m (Bar_Chart_1) (Bar_Chart_2) (Bar_Chart_3) (Bar_Chart_4) (Bar_Chart_5) (Bar_Chart_6) (Bar_Chart_7) (Bar_Chart_8) 1 PBT bef
Slide 11: Q2 FY24 Performance highlights
Q2 FY24 Performance highlights V O L U M E & R E V E N U E Q2 retails and wholesales increased significantly YoY, as supply improves. Overall volumes impacted by planned production shutdown. Range Rover / Range Rover Sport production ramping up to 2,800 units per week on average in Q2; Peak weekly v
Slide 12: Q2 wholesales of 97K, up 29% yoy
Q2 wholesales of 97K, up 29% yoy and up 4% qoq H1 Wholesales of 190k, up 29% year-on year FY 24 |Who lesales Brands | Units in 000 ’ s Range Rover Defender Discovery Jaguar Total Q2 37.4 45.7 44.3 Q2 FY23 Q1 FY24 Q2 FY24 17.5 28.3 30.5 Q2 FY23 Q1 FY24 Q2 FY24 8.4 9.0 8.5 12.0 10.3 13.5 Q2 FY23 Q1 FY
Slide 13: Wholesales by region and powertrain mix
UK N. AMEIACA EUROPE CHINA OVERSEAS JLR POWERTRAIN MIX (RETAILS) Q2 FY24YTD FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Q2 Wholesales up in North America, China Europe compared to Q1 YTD Wholesales higher in all regions compared to the prior year FY 24 |Wh o lesales Region s Un i t s i n 000 s
Slide 14: Q2 FY24 PBT £442m up £615m yoy
Q2 FY24 PBT £442m up £ 615m yoy Improved volumes, mix and pricing slightly offset by increased contribution and structural costs Q2 FY 24 | IFRS, £m Volumes 367 Mix 58 P&A 13 Other (3) Pricing 199 VME (1.1)% to (1.5)% (24) FME & Selling (96) Others 19 Operational FX (251) Realised FX derivatives 210
Slide 15: Free cash flow positive £300m in Q2 FY24
Free cash flow positive £300m in Q2 FY24 Reflects cash profits in excess of investment; working capital slightly negative Q2 FY 24|IFPS, £m D&A 525 Free cashflow excluding working capital £376m (40) Working capital detail H1 FY24 PBT Non-cash and other Cash Tax Cash profit after tax investment spend
Slide 16: Total Q2 FY24 Investment £0.8b; full year target £3B
Total Q2 FY24 Investment £0.8b; full year FY24 target remains £3B Engineering capitalization rate 64%, up from 61% in Q1 FY24 reflecting expected maturation of vehicle programmes Q2 FY24 IFPS, £m Q2 FY24 H1 FY24 688 412 1,100 372 1,472 368 209 577 198 775 Capitalised Engineering Expensed Engineering
Slide 17: Business Update Jaguar Land Rover Automotive PLC
BUSINESS UPDATE JAGUAR LAND ROVER AUTOMOTIVE PLC JLR.
Slide 18: Easing of chip and other supply constraints continues
Easing of Chip and other supply constraints continues Reflects partnership agreements and stronger relationships with key suppliers Units 000 ’ s COMMENTARY Chip and other supply constraints continue to ease in Q2 with the benefit of agreements and relationships with key suppliers Successfully respo
Slide 19: New Range Rover & Range Rover Sport production continues to grow
New Range Rover & Range Rover Sport production continues to grow New body shop in Solihull goes live in Q3 and is expected to increase capacity by c. 30% over time AVERAGE WEEKLY RR/RRS PRODUCTION Peak vols 3,250 1,100 1,600 2,300 2,600 2,800 2,800 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Not
Slide 20: Looking ahead
Looking ahead Expect improved profitability in FY24 relative to prior guidance OUTLOOK FOR H2 FY 24 Gradual recovery in volumes to continue Expect inflation to moderate EBIT margin now expected to improve to around 8% for FY24 compared to prior guidance of 6% plus Net debt to reduce to <£1bn by end
Slide 21: Tata Commercial Vehicles
Tata Commercial Vehicles (Includes Tata CV India, Tata Cummins JO results and Tata CV International) Girish Wagh & PB Balaji 21
Slide 22: Registration (Vahan) market share
22 Registration (Vahan) market share *VAHAN registration market share basis Govt of India’s VAHAN portal, the data excludes registration for states of MP, Andhra and Telangana and based on 7 categories of VAHAN portal. *The data is based on details updated as on 20th October,2023. VAHAN portal data
Slide 23: Q2: Revenue ₹20.1KCr, EBITDA 10.4%, PBT (bei) ₹1.5KCr
Q2: Revenue ₹ 20.1KCr, EBITDA 10.4%, PBT (bei) ₹ 1.5KCr Double digit EBITDA achieved. H1 PBT (bei) improves by 1.9KCr yoy Q 2 F Y 2 4 | T a t a C o m m e r c i a l V e h i c l e s | Ind AS, ₹ K C r 0.3 0.9 1.5 PBT (bei) ₹KCr 16.4 17.0 20.1 Revenue ₹KCr 5.0 9.4 10.4 EBITDA % YoY 22.3 % YoY + 540 bps
Slide 24: EBIT at 7.9% (+560 bps); PBT (bei) ₹1.5K Cr
EBIT at 7.9% (+560 bps); PBT (bei) ₹ 1.5K Cr Margins improve on richer mix, higher realizations For analytical purposes only EBIT % 2.3% 2.4% 4.5% 0.7% (1.9)% (0.1)% 7.9% ₹ Cr. Ind AS D&A and PDE : ₹(94) Cr Employee cost: ₹ (114) Cr Others : ₹ (98) Cr Q2FY24 | Tata Commercial Vehicles | Ind AS, ₹ Cr
Slide 25: Tata Commercial Vehicles – Business update
Tata Commercial Vehicles – Business update Key Highlights Bright Spots Focus areas • Customer Sentiment Index, remained firm or improved across segments 25 • All the production bottlenecks have been addressed, and additional 223 variants have been introduced in Q2 • Commodity softened in Q2 thereby
Slide 26: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility Smart City Mobility Solutions Digital business • 400+ EV buses deployed in H1; total of 1000+ EV Buses till date are operational on roads 26 • TML e-bus fleet cumulatively crossed 97 million Kms with >95% uptime till Q2 FY24. • Started
Slide 27: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & PB Balaji (Includes Tata PV, EV India, FIAPL JO results and international business (PV+EV)) 27
Slide 28: Market shares steady. EV penetration increases to 13%
11.4% 13.5% 13.4% FY22 FY23 H1 FY24 Market shares steady. EV penetration increases to 13% VAHAN Domestic Market share (1) 72% 67% 60% 20% 16% 13% 5% 9% 13% 3% 8% 14% FY22 FY23 H1 FY24 Petrol Powertrain Mix Diesel EV CNG Strong response to recent launches to drive volume and share growth in coming qu
Slide 29: EVs continue to grow with ~55% YoY volume increase
EVs continue to grow with ~55% YoY volume increase Tata Passenger Electric Vehicles 2,000 5,314 7,773 FY22 FY23 H1 FY24 Charging infra 75 165 192 143 250 287 FY22 FY23 H1 FY24 Network Cities Dealerships VAHAN registration market share (1) EV Volumes 86.5% 83.9% 73.4% FY22 FY23 H1 FY24 YoY 54.6% 12.0
Slide 30: Q2: Revenue ₹12.2KCr, EBITDA 6.5%, PBT (bei) positive
Q2: Revenue ₹ 12.2KCr, EBITDA 6.5%, PBT (bei) positive A transition quarter; Margins recover with easing commodity inflation 0.2 0.2 0.3 PBT (bei) ₹KCr 12.5 12.8 12.2 Revenue ₹KCr 5.4 5.3 6.5 EBITDA % YoY (3.0) % YoY + 110 bps 1 3 9. 0 W h o l e s a l e s ( K u n i t s ) Q 2 F Y 2 4 H 1 F Y 2 4 0.2
Slide 31: EBIT at 1.8% (+140 bps); PBT (bei) 0.3K Cr
EBIT at 1.8% (+140 bps); PBT (bei) 0.3K Cr Margins improve on account of favourable commodity costs, offsetting higher fixed expenses and lower volumes For analytical purposes only EBIT % 0.4% (1.4)% 0.2% 3.0% (1.6)% 1.2% 1.8% ₹ Cr. IndAS FME : ₹(53)Cr Employee cost : ₹(81) Cr D&A and PDE : ₹(71)Cr
Slide 32: Business update – Q2 FY24
Business update – Q2 FY24 Wholesale volumes sustained in Q2; well poised to capitalize the new launches in Q3 FY24 tata passenger and electric vehicles tata motors connecting aspirations Wholesale volumes maintained in line with plans to transition to the new models Sequential margin improvement #2
Slide 33: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 3
Slide 34: Q2 FY24 Free Cash Flows ₹0.9 KCr
Q2 FY24 Free Cash Flows ₹ 0.9 KCr Cash profits well ahead of Capex; Favourable working capital movement Q2 FY24 | Tata Motors Domestic Business (CV+PV) | IndAS, ₹ Cr (1) Payables, acceptances ₹ 861 Cr Trade receivables ₹ 504 Cr Inventories ₹ 124 Cr Others ₹ 519 Cr (1) Includes free cash flows of TML
Slide 35: Investment Spending in Q2 FY24 ₹1.8 KCr
Investment Spending in Q2 FY24 ₹ 1.8 KCr FY24 capex estimated at ~ ₹8 KCr as electrification investments step up Q2 FY24 | Tata Motors Domestic Business (1) | IndAS , ₹ C r (1)Includes details for TML, TMPVL, TPEML and Joint operations FIAPL, TCL., TML Smart City Mobility Solutions, CV Mobility Solu
Slide 36: TMF: Business continues to improve gradually
TMF: Business continues to improve gradually 3366 Prudent sourcing and concerted collection efforts drive portfolio quality and profitability *GNPA & NNPA % includes performance of On and off book assets. @ Q1FY24 PBT is before an extraordinary item of Rs. 39 crs (Stamp Duty for the demerger transac
Slide 37: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook • Remain optimistic on demand despite external challenges while anticipating moderate inflation. • H2 performance to improve further on the back of seasonality, improved suppl
Slide 38: Q&A session
Please submit your questions in the Q&A textbox Please mention your name and name of the organization you represent along with the questions Thank you Q&A session 8
Slide 39: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended Sep 30, 20239
Slide 40: Tata Motors Group Financials Consolidated Quarter ended September 30, 2023
Tata Motors Group Financials Consolidated Quarter ended September 30, 2023 Rs Cr. IndA JLR Tata Commercial Vehicles Tata Passenger Vehicles Others* Consolidated Revenue from operations 71,787 20,087 12,174 1,081 105,128 Grant income / incentives 673 68 71 12 824 Expenses : Cost of materials consumed
Slide 41: Tata Motors Group Financials Consolidated Quarter ended September 30, 2022
Tata Motors Group Financials TATA MOTORS Consolidated Quarter ended September 30, 2022 Rs Cr. IndA JLR Tata Commercial Vehicles Tata Passenger Vehicles Others* Consolidated Revenue from operations 49,477 16,420 12,547 1,166 79,611 Grant income / incentives 471 72 101 2 646 Expenses Cost of materials
Slide 42: Tata Motors Group Financials Jaguar Land Rover
Tata Motors Group Financials 42 Jaguar Land Rover Q2 FY 24 & H1 FY24 | IFRS, £m Q2 FY23 Q1 FY24 Q2 FY24 FY 23 YTD FY 24 YTD Q2 v Q2 YoY Change Q2 v Q1 QoQ Change FY24 v FY23 YoY Change Revenues 5,260 6,903 6,857 9,666 13,760 1,597 (46) 4,094 Material and other cost of sales (3,212) (4,026) (4,166) (
Slide 43: Q2 FY24 PBT £442m
Q2 FY24 PBT £442m Increased volumes and fx revaluation gains offset by mix deterioration and labour & overhead costs Q2 FY24 FRS, £m * PBT is profit before tax and exceptional items 435 (41) (7) 34 (94) 115 442 Volumes 76 Mix (80) P&A (31) Other (6) Q1 FY24 PBT* Volume & Mix Net Pricing Contribution
Slide 44: Q2 YoY operational FX unfavourable, offset partially by hedging
Q2 YoY operational FX unfavourable, offset partially by hedging Total FX £64m favourable after other FX revaluation, favourable unrealised commodity revaluation Q2 FY 2 4 Y o Y | IFRS, £m (41) 44 64 107 (251) 210 23 82 43 Operational Exchange (1) Realised FX hedges FX Impact on EBIT FX revaluation o
Slide 45: Q2 Retails of 106.6K, up 21% yoy
Q2 Retails of 106.6K, up 21% yoy and up 4.5% qoq H1 Retails of 209k, up 25% year-on year FY 24 Retails Brands Unit in 000’s RANGE ROVER DEFENDER DISCOVERY JAGUAR TOTAL Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 FY23 FY24 FY24 FY23 FY24 FY24 FY23 FY24 FY24 FY23 FY24 FY24 FY23 FY24 FY24 FY23 FY24 FY
Slide 46: Q2 Retails higher in North America, China & Europe
Q2 Retails were higher in North America, China & Europe compared to Q1 YTD Retails were higher in all regions compared to the prior year FY24 Retails Brands Units in ooo's UK N. AMERICA EUROPE HINA OERSEAS JLR POWERTRAIN MIX (RETAILS) 15.0 17.7 17.7 25.5 12.2 16.9 19.7 19.7 26.0 19.7 16.3 23.3 20.6
Slide 47: Debt profile
Debt profile Strong liquidity; debt maturities well spread out £5.8b Liquidity Cash, 4,293 RCF, 1,520 625 2,070 4,563 1,997 250 271 9,776 5,386 5,386 CY23 CY24 CY25 CY26 CY27 Thereafter Total Borrowings Long Term Debt Short Term Finance Lease Tata Domestic Business* Debt maturity profile IndAS ₹ Cro
Slide 48: $400m Bond Buyback
$400m Bond Buyback Initiated and completed in October and will be accounted for in Q3 On 6 October JLR launched an ‘any and all’ tender for the following three series of notes, which closed on 13 October with the following amounts being settled on 18 October:- Impact on debt maturity profile of bond
Slide 49: China JV continues to deliver improved financial performance
China JV continues to deliver improved financial performance Q 2 FY 24 & H 1 FY 24 | IFRS, £m (Presented on 100% basis) Q2 FY23 Q1 FY24 Q2 FY24 FY 23 YTD FY 24 YTD Q2 v Q2 YoY Change Q2 v Q1 QoQ Change FY24 v FY23 YoY Change Retail volumes ('000 units) 15.2 12.9 13.1 26.2 26.0 (2.1) 0.2 (0.2) Wholes