Tata Motors Limited · NSE:TMCV
Tata Motors — Q2 FY24 Earnings Presentation
50 slides from Tata Motors's earnings presentation, Nov 2, 2023
Slide 1: Submission of investor presentation to stock exchanges
BSE Limited Listing Compliance Department First Floor, New Trading Ring National Stock Exchange of India Ltd. Rotunda Building, P J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Fort, Mumbai 400 001 Bandra(E), Mumbai 400 051 November 2, 2023 Sc no – 17895 Dear Sir/Madam, Ref: ISIN: INE
Slide 2: Tata Motors Group Results for quarter ended September 30, 2023
Tata Motors Group Results for quarter ended September 30, 2023
Slide 3: Safe harbour statement
Safe harbour statement Other Details • Presentation format : The results provided represent the details on consolidated Statements in this presentation describing the objectives, projections, estimates segment level. The operating segment comprise of Automotive segment and and expectations of Tata M
Slide 4: Product and other highlights
Product and other highlights Portfolio of CNG products; Twin-cylinder Major facelifts of Nexon, Nexon.EV, Supplied 1000 e-Buses till date and delivered first technology, no compromise on boot space Harrier and Safari Hydrogen cell powered bus JLR opens new state-of-the-art future JLR order book rema
Slide 5: Q2: Revenue ₹105.1KCr, EBITDA 13.7%, PBT(bei) ₹6.1KCr
Q2: Revenue ₹ 105.1KCr, EBITDA 13.7%, PBT(bei) ₹ 6.1KCr Business continues its profitable, cash accretive growth momentum Q 2 F Y 2 4 | C o n s o l i d a t e d | IndAS, ₹ K C r Revenue EBIT PBT (bei) FCF(Auto) % ₹KCr YoY + 7.9KCr ₹KCr YoY + 2.9KCr ₹KCr YoY 32.1 % YoY + 510 bps 102.2 105.1 6.1 79.6 8
Slide 6: EBIT 7.5%; Net Auto Debt reduces to ₹38.7 KCr
EBIT 7.5%; Net Auto Debt reduces to ₹ 38.7 KCr All auto verticals continue their growth trajectory Q 2 F Y 2 4 | C o n s o l i d a t e d | IndAS Revenue ₹ KCr 5.8 0.2 Profitability (EBIT) ₹ C r 5.7 13.8 105.1 79.6 17.5% 7.1% 7.2% 0.3% 32.1% increase Q2FY23 Volume & Mix Price Translation Others Q2FY2
Slide 7: Update on Tata Technologies – Pre-IPO deal signed
Update on Tata Technologies – Pre-IPO deal signed Furthers TML’s deleveraging agenda • 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 8: 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 The opportunity • Indian freight market is massive and fragmented ($120B with 12% CAGR 1). • Significant investments made in road infrastructure and i
Slide 9: Avinya will be underpinned by JLR's EMA platform
Avinya will be underpinned by JLR’s EMA platform 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 vi
Slide 10: Jaguar Land Rover Automotive PLC
JAGUAR LAND ROVER AUTOMOTIVE PLC R I C H A R D M O LY N E U X Chief Financial Officer Results for the quarter ended September 30, 2023 9
Slide 11: Q2 Revenue £6.9b, EBIT 7.3%, PBT(bei) £442m
Q2 Revenue £6.9b, EBIT 7.3%, PBT(bei) £442m Strong Q2 & H1 performance compared to prior year with all H1 metrics significantly higher Q2 FY24 | Jaguar Land Rover | IFRS, £m Revenue EBIT £m PBT (bei)1 FCF YoY + 0.3 b YoY 30.4 % % YoY +630 bps YoY +0.6 b ₹£m ₹£m 451 6,903 6,857 435 442 8.6 300 Q2 FY2
Slide 12: Q2 FY24 Performance highlights
Q2 FY24 Performance highlights VOLUME & REVENUE • 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 volume
Slide 13: 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 FY24 |Wholesales Brands | Units in 000’s TOTAL 45.7 44.3 96.8 93.3 37.4 75.3 28.3 30.5 17.5 12.0 10.3 13.5 8.4 9.0 8.5 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 FY23 FY24 FY24 FY23 FY24 FY24 FY23 FY24 FY2
Slide 14: Q2 Wholesales up in North America, China & Europe compared to Q1
Q2 Wholesales up in North America, China & Europe compared to Q1 YTD Wholesales higher in all regions compared to the prior year FY24 |Wholesales | Regions |Units in 000’s 26.3 22.5 22.4 22.0 20.4 21.1 19.7 17.0 16.5 15.7 13.3 13.2 11.9 11.5 11.9 Q 2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 FY23
Slide 15: 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 Q 2 F Y 2 4 | IFRS, £m Operational FX (251) Realised FX derivatives 210 FME & Pricing 199 (96) Revaluation 105 Selling Volumes 367 VME (1.1)% Unrealised commod
Slide 16: 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 Free cashflow excluding D&A 525 working capital £376m Working capital detail (40) Payables (80) Receivables (176) Inventory 184 749 (775) Other (4) 1,151 (76) 442 300 PBT
Slide 17: 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 198 775 209 577 368 Capitalised Expensed Total Capital Total Q2 FY24 Engineering Engineering Engineering Investment Inves
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Slide 19: 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 WHOLESALE VOLUME COMMENTARY 100 95 • Chip and other supply constraints continue to ease in Q2 with the benefit of agreements and relationships 90 with key s
Slide 20: 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 2,800 2,800 2,600 2,300 1,600 1,100 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Not
Slide 21: Looking ahead
Looking ahead Expect improved profitability in FY24 relative to prior guidance • Gradual recovery in volumes to continue • Expect inflation to moderate OUTLOOK FOR H2 FY24 • EBIT margin now expected to improve to around 8% for FY24 compared to prior guidance of 6% plus • Net debt to reduce to <£1bn
Slide 22: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International) 21
Slide 23: Registration (Vahan) market share
Registration (Vahan) market share Superior products and better availability drive share gains in MHCV. Actions underway to improve SCV shares Tata Commercial Vehicles | Domestic market share* Commercial Vehicles 41.7% 39.1% 39.7% FY23 Q1 FY24 Q2 FY24 HGV+HMV MGV LGV Passenger 44.2% 49.6% 50.4% 45.4%
Slide 24: 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 | IndAS, ₹ K C r Revenue PBT (bei) EBITDA EBIT ₹KCr ₹KCr YoY 22.3 % % YoY + 540 bps % YoY + 560 bps YoY + 1.2KCr 1.5 20.1
Slide 25: 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 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 | IndAS, ₹ Cr ₹ Cr. IndAS D&A and PDE : ₹(94) Cr Employee cost: ₹ (114) Cr Others : ₹ (98) Cr EBIT % 2.3% 2.4% 4.5% 0.7% (1.9)% (0.1)% 7.9% For an
Slide 26: Tata Commercial Vehicles – Business update
Tata Commercial Vehicles – Business update Key Highlights Bright Spots Focus areas • Improved VAHAN share in Q2 vs Q1 FY24, • Customer Sentiment Index, remained firm • Continue to drive realization after impacted by BS6 Phase 2 availability or improved across segments improvement and grow Vahan shar
Slide 27: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility Smart City Mobility Solutions Digital business • ACE EV: 1600 ACE EVs are plying the • 400+ EV buses deployed in H1; total of • Fleet Edge has now more than 480K roads, clocking a combined 4 million 1000+ EV Buses till date are operati
Slide 28: 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 29: Market shares steady. EV penetration increases to 13%
Market shares steady. EV penetration increases to 13% Strong response to recent launches to drive volume and share growth in coming quarters Tata Passenger Vehicles |India business Volumes VAHAN Domestic Market share(1) Powertrain Mix Petrol Diesel EV CNG 3% 5% 8% 14% 9% 20% 13% 16% 13% 13.5% 13.4%
Slide 30: EVs continue to grow with ~55% YoY volume increase
EVs continue to grow with ~55% YoY volume increase Growing dealer and charging infra network to accelerate adoption Tata Passenger Electric Vehicles Wholesales (incl. exports ) (K units) EV Volumes VAHAN registration market share(1) YoY 54.6% 86.5% 83.9% 73.4% 19.3 18.6 12.0 Q2 FY23 Q1 FY24 Q2 FY24
Slide 31: 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 Q 2 F Y 2 4 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ K C r Revenue EBITDA EBIT ₹KCr % PBT (bei) YoY (3.0) % YoY + 110 bps % YoY +140 bps YoY +0.1KCr ₹KCr 12.5 12.
Slide 32: 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 ₹ Cr. IndAS Q 2 F Y 2 4 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ Cr FME : ₹(53)Cr Employee cost : ₹(81) Cr D&A and PDE : ₹(71)Cr PV (I
Slide 33: Business update – Q2 FY24
Business update – Q2 FY24 Wholesale volumes sustained in Q2; well poised to capitalize the new launches in Q3 FY24 Key Highlights Bright spots Challenges • Wholesales grew by 5% this quarter • Industry expected to sustain wholesale • High levels of channel inventory built volumes in Q3 up in anticip
Slide 34: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 33
Slide 35: 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 Q 2 F Y 2 4 | T a t a M o t o r s D o m e s t i c B u s i n e s s ( C V + P V ) | I n d A S , ₹ C r (1) Payables, acceptances ₹ 861 Cr Trade receivables ₹ 504 Cr Inventories ₹ 124 Cr Others ₹ 519
Slide 36: 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 Q 2 F Y 2 4 | T a t a M o t o r s D o m e s t i c B u s i n e s s (1) | I n d A S , ₹ C r PV+EV CV 783 1,817 161 632 427 1,034 622 607 223 204 471 1,185 248 563 359 Capitalised Expensed T
Slide 37: TMF: Business continues to improve gradually
TMF: Business continues to improve gradually Prudent sourcing and concerted collection efforts drive portfolio quality and profitability Q 2 F Y 2 4 | T a t a M o t o r s F i n a n c e | IndAS, ₹ ( C r I N R ) • Concerted collection efforts are delivering results. Collection Efficiency IndAS Q2 FY23
Slide 38: 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 39: Q&A session Thank you
Q&A session Thank you Please submit your questions in the Q&A textbox Please mention your name and name of the organization you represent along with the questions 38
Slide 40: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended Sep 30, 2023 39
Slide 41: Tata Motors Group Financials
Tata Motors Group Financials Consolidated Quarter ended September 30, 2023 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles 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 consume
Slide 42: Tata Motors Group Financials
Tata Motors Group Financials Consolidated Quarter ended September 30, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles 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 consumed
Slide 43: Tata Motors Group Financials – Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q 2 F Y 2 4 & H 1 F Y 2 4 | I F RS , £ m Q2 v Q2 Q2 v Q1 FY24 v FY23 Q2 FY23 Q1 FY24 Q2 FY24 FY 23 YTD FY 24 YTD YoY Change QoQ Change 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) (
Slide 44: Q2 FY24 PBT £442m
Q2 FY24 PBT £442m Increased volumes and fx revaluation gains offset by mix deterioration and labour & overhead costs Q2 FY24 | IFRS, £m Labour & overheads Operational FX (81) Volumes 76 Pricing 17 Realised FX derivatives 107 Mix (80) Other Income & Revaluation (24) Expense P&A (31)
Slide 45: 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 Q 2 F Y 2 4 Y o Y | I F RS , £ m 43 107 82 64 (41) 23 (251) 210 Operational Exchange Realised FX hedges FX Impact on EBIT FX revaluation of
Slide 46: 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 TOTAL 102.0 106.6 47.5 48.8 88.1 40.3 27.6 30.3 16.9 17.3 15.5 16.3 13.6 11.4 11.2 Q2 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 208.6
Slide 47: Q2 Retails were higher in North America, China & Europe compared to Q1
Q2 Retails were higher in North America, China & Europe compared to Q1 YTD Retails were higher in all regions compared to the prior year 27.3 25.5 26.0 23.3 19.7 19.7 20.6 19.7 19.1 16.9 17.7 17.7 16.3 26% 28% 15.0 12.2 35% 61% 59% 53.3 54% 43.0 44.0 40.2 38.8 37.3 31.0 33.3 31.6 23.0 11% 13% 13% Q2
Slide 48: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR IndAS Tata Domestic Business* IFRS, £m Debt maturity profile ₹ Crores Debt maturity profile Total Total 16,083 6,542 921 729 5,386 1,748 Undrawn RCF 5,386 9,776 1520 4,563 250 271 4,065 2,070 1,997 625 791 * 120 774 CY23 CY24 CY25 CY
Slide 49: $400m Bond Buyback
$400m Bond Buyback Initiated and completed in October and will be accounted for in Q3 Impact on debt maturity profile of bond buyback On 6 October JLR launched an ‘any and all’ tender for the following 1,200 Base case three series of notes, which closed on 13 October with the following pre-buyback a
Slide 50: China JV continues to deliver improved financial performance
China JV continues to deliver improved financial performance Q 2 F Y 2 4 & H 1 F Y 2 4 | I F RS , £ m (Presented on 100% basis) Q2 v Q1 FY24 v FY23 Q2 Q1 Q2 Q2 v Q2 YoY FY 23 YTD FY 24 YTD QoQ YoY Change FY23 FY24 FY24 Change Change Retail volumes ('000 units) 15.2 12.9 13.1 26.2 26.0 (2.1) 0.2 (0.2