Tata Motors Limited · NSE:TMCV
Tata Motors — Q4 FY2023 Earnings Presentation
58 slides from Tata Motors's earnings presentation, May 16, 2023
Slide 1: Tata Motors Group Results for quarter ended March 31, 2023
TATA MOTORS Tata Motors Group Results for quarter ended March 31, 2023
Slide 2: Safe harbour statement
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 applicable sec
Slide 3: Product and other highlights for the year – Tata Motors (India)
Product and other highlights for the year – Tata Motors (India) Launch of 5 CNG trucks, including India’s first in MHCV, introduction of new age ADAS Launch of Tiago.EV, strong response. Acquisition of Ford Sanand Facility complete Yodha 2.0, Intra V20 bi-fuel and Intra V50. MOU with UBER for 25,000
Slide 4: Update on JLR Reimagine future
Update on JLR Reimagine future Planning to invest £15 billion over 5 years Pre-order books to open for BEV Range Rover from this autumn EMA (Electrified Modular Architecture) platform to be all BEV with first model in 2025 First of three reimagined Jaguar BEV models, a 4 door GT, to be revealed in 2
Slide 5: Q4: Revenue ₹105.9 KCr, EBITDA 13.3%, PBT(bei) ₹5.0 KCr
Q4: Revenue ₹ 105.9 KCr, EBITDA 13.3%, PBT(bei) ₹ 5.0 KCr Robust performance of all the auto verticals FY 23 | Consolidated | Ind AS, ₹ KCr Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Y-o-Y FY23 FY22 Y-o-Y Global wholesales (K units) 317 336 322 362 335 8.0% 1,336 1,087 22.9% Revenue 71.9 79.6 88.5 105.
Slide 6: EBIT 6.8%; Net Auto Debt reduces to ₹43.7 KCr
EBIT 6.8%; Net Auto Debt reduces to ₹ 43.7 KCr Revenue growth ~35% YoY, EBIT improves 360bps YoY. Q4 FY 23 | Consolidated | IndAS Revenue ₹ KCr 78.4 19.2 8.2 (0.5) 0.6 24.4% 10.5% (0.5)% 0.7% 105.9 Q4FY22 Volume & Mix Price 35.1% increase Translation Others Q4FY23 Profitability (EBIT) ₹Cr 2,478 3,31
Slide 7: Financials: Headline observations
Financials: Headline observations* Amongst the strongest quarters for TML Group QUARTER HIGHEST EVER REVENUE ₹ 105.9 K crs HIGHEST EVER EBITDA ₹ 14.1 K crs STRONG PBT (bei) All auto verticals profitable ₹ 5.0 K crs NET AUTO DEBT REDUCTION ₹ 13.8 K crs in Q4 FULL YEAR HIGHEST EVER REVENUE ₹ 346.0 K c
Slide 8: Dividend ₹ per share recommended
Dividend ₹ 2 per share recommended The Board has recommended a dividend of ₹ 2 per share for Ordinary shareholders (100% of face value) and ₹ 2.1 per share for DVR shareholders To be approved in the ensuing shareholders meeting Resultant cash outflow would be ₹ 771 cr. TATA MOTORS 8
Slide 9: Jaguar Land Rover Results for the quarter ended March 31, 2023
JAGUAR LAND ROVER JAGUAR LAND ROVER AUTOMOTIVE PLC Results for the quarter ended March 31, 2023 RICHARD MOLYNEU X Acting Chief Financial Officer 9
Slide 10: Q4 Revenue £7.1b, EBITDA 14.6%, PBT (bei) £368m
Q4 Revenue £7.1b, EBITDA 14.6%, PBT (bei) £368m Financial performance continued to improve in Q4 FY23 FY23 | Jaguar Land Rover | IFRS, £m Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Y-o-Y FY23 FY22 Y-o-Y Retails (K units) 78.8 88.1 84.8 102.9 79.0 30.2% 354.7 376.4 (5.8)% Revenue (£m) 4,406 5,260 6,041
Slide 11: Q4 & FY23 Performance highlights
Q4 & FY23 Performance highlights Volume & Revenue Q4 retails and wholesales were both up QoQ and YoY, reflecting the continuing improvement in chip and other supply constraints. Full year wholesales were up 9% whilst retails were down 6% Range Rover / Range Rover Sport production is approaching targ
Slide 12: Q4 wholesales of ~95k, up 19% QoQ, 24% YoY
Q4 wholesales of ~95k, up 19% QoQ, 24% YoY Full year wholesales up 9% compared to the prior year FY 23 | Brans | Wholesales* | Units in 000’s RANGE ROVER DEFENDER DISCOVER JAGUAR QUARTER FULL YEAR 37.8 Q4 FY22 40.2 Q3 FY23 47.8 Q4 FY23 15.9 Q4 FY22 23.8 Q3 FY23 27.5 Q4 FY23 9.5 5.6 9.6 13.3 10.0 9.7
Slide 13: Q4 wholesales were higher in all regions compared to the prior year
Q4 wholesales were higher in all regions compared to the prior year Full year wholesales also higher in all regions compared to the prior year FY 23 | Region s | Wholesales* | Units in 000’s U K N AMERICA EUROPE CHINA OVERSEAS QUARTER 16.4 13.6 20.3 Q4FY22 Q3FY23 Q4FY23 19.0 26.2 19.3 Q4FY22 Q3FY23
Slide 14: Q4 FY23 PBT up £359m YoY
Q4 FY23 PBT up £359m YoY Favourable volume, mix and pricing, offset partially by inflation and other items FY 23 | IFRS, £m Volumes 272 Mix 335 Emissions (35) Other 22 Pricing 242 Material cost (230) VME (0.9)% to (0.5)% 23 Manufacturing (22) Warranty (69) (321) SG&A (117) Depn & Amort. (73) L&OH (2
Slide 15: Free cashflow positive £815m in Q4 and £521m for full year
Free cashflow positive £815m in Q4 and £521m for full year Working capital favourable £417m in Q4 and £(17)m for full year Q4FY23 | IFRS, £m D&A 578 826 (80) Free cashflow excluding working capital £398m 1,114 (716) Payables 653 Receivables (106) Inventory 55 Other (185) 417 815 368 PBT*Non-cash and
Slide 16: Total FY23 investment £2.4bn, engineering capitalisation rate 43%
Total FY23 investment £2.4bn, engineering capitalisation rate 43% Q4 FY23 investment £0.7bn, engineering capitalisation rate 53% FY23 | IFRS, £Mfy23 Capitalised Engineering 727 Expensed Engineering 966 Total Engineering 1,693 Capital Investment 660 Total Investment2,353 FY22 455 839 1,294 742 2,036
Slide 17: Business Update
BUSINESS UPDATE JAGUAR LAND ROVER 17
Slide 18: Strength in average revenue in last five years
Strength in average revenue in last five years GBP 000’s AVERAGE REVENUE PER UNIT 80 70 60 50 40 30 FY19 FY20 FY21 FY22 FY23 Average revenue per unit = Revenue / wholesale volume JAGUAR LAND ROVER 18
Slide 19: Semiconductor supply improved in Q4 FY23
Semiconductor supply improved in Q4 FY23 Expect improvement to continue over FY24 Units 000’s WHOLESALE VOLUME* 100 90 80 70 60 50 40 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 COMMENTARY Agreements in place with key suppliers now improving visibility of chip supply Expect gradu
Slide 20: New Range Rover & Range Rover Sport production continues to increase
New Range Rover & Range Rover Sport continues to increase Production approaching target levels FY23 AVERAGE WEEKLY RR/RRS PRODUCTION 1,100 Q1 1,600 Q2 2,300 Q3 2,600 Q4 Note: Approximately 46 weeks of production in each fiscal year due to planned shut down periods JAGUAR LAND ROVER 20
Slide 21: Significant inflation headwinds offset by Refocus in FY23
Significant inflation headwinds offset by Refocus in FY23 Revenue and cost optimisation actions being taken to mitigate inflation FY23 SOURCES OF INFLATION JAGUAR LAND ROVER REFOCUS SAVINGS IN FY23 ■Commodity prices Semiconductors Energy ☐ Other MARKET PERFORMANCE £600m value contribution Primarily
Slide 22: China market update
China market update JLR China FY23 profitability highest in 5 years with premium market volumes steady last 2 years JAGUAR LAND ROVER TOTAL CHINA PREMIUM MARKET AND JLR SHARE STABILIZED WHILE NEV GROWING AVERAGE NET VEHICLE REVENUE KEEPS AN INCREASING TREND 3,903k 3,717k 3,916k GBP -Import 100k 101k
Slide 23: Model developments
Model developments MY 24 RANGE ROVER VELAR RANGE ROVER SPORT SV RANG ROVE ON SALE NOW COMING SOON JAGUAR LAND ROVER V021 LFG • Velar offers the quietest experience on the road Extended electric range offers introduction into everyday electric luxury mobility of the future New floating infotainment s
Slide 24: Looking ahead
Looking ahead Remain committed to consistent, competitive cash accretive growth while deleveraging the business OUTLOOK (FY24) • JAGUAR LAND ROVER We remain optimistic on demand despite near term uncertainties while anticipating moderate inflation Aim to improve further and deliver a strong performa
Slide 25: Tata Commercial Vehicles
6530 TATA OL 700 7754 Tata Commercial Vehicles (Includes Tata CV India, Tata Cummins JO results and Tata CV International) TATA MOTORS Girish Wagh & PB Balaji 25
Slide 26: Registration (Vahan) market share starts to recover
Registration (Vahan) market share starts to recover HCV, LGV and Passenger recover; MGV to be addressed on priority Tata Commercial Vehicles | Domestic market share* Commercial Vehicles 44.7% 41.7% 43.1% 39.9% 41.1% FY22 FY23 H1 FY23 Q3 FY23 Q4 FY23 TATA MOTORS Vahan Ref HGV+HMV MGV LGV Tonnage > =
Slide 27: Tata Commercial Vehicles - Volumes
RETAILS Tata Commercial Vehicles - Volumes Strong recovery lead by MHCV and CV passenger segment, offset by weaker exports Tata Commercial Vehicles | India Business Volumes TATA MOTORS WHOLESALES Wholesales (incl. exports) (K units) Wholesales (incl. exports) (K units) YoY (2.7)% Exports YoY 15.6% E
Slide 28: Q4: Revenue 21.2KCr, EBITDA 10.1%, PBT(bei) 1.7 KCr
Q4: Revenue 21.2KCr, EBITDA 10.1%, PBT(bei) € 1.7 KCr Double digit EBITDA margins in Q4 TATA MOTORS FY23 | Tata Commercial Vehicles | IndAS, * KCr Q1 FY23 Q2 FY23 Q3 FY23 Global wholesales (K units) 103.7 103.1 97.1 Q4 FY23 118.7 Q4 FY22 122.3 Y-o-Y (3.0)% FY23 FY22 Y-o-Y 422.6 367.5 15.0% Revenue 1
Slide 29: EBIT at 8.6% (+520 bps); PBT (bei) 1.7 KCr
EBIT at 8.6% (+520) bps; PBT (bei) € 1.7 K Cr Margins improve on richer mix, higher realisations and softening commodity prices Q4FY23 | Tata Commercial Vehicles | IndAS, * Cr 607 365 696 176 FME (13) Cr Employee cost (153) Cr D&A and PDE: *94Cr Others: * (95) Cr (167) 27 27 TATA MOTORS * Cr. IndAS
Slide 30: We continue to lead on key customer facing metrics
We continue to lead on key customer facing metrics Improved performance on key customer facing metrics while maintaining higher level of dealer satisfaction TATA MOTORS TOP OF MIND AWARENESS 55 55 55 NET PROMOTER SCORE COMPOSITE SATISFACTION SCORE* 57 71 821 792 813 68 68 65 FY20 FY21 FY22 FY23 FY20
Slide 31: Tata Commercial Vehicles - overall update
Tata Commercial Vehicles - overall update Industry volumes continued to grow led by MHCVs and passenger carriers Key highlights Industry continued its upward trajectory, +22% vs Q4 FY22, +34% in FY23 vs FY22. 40+ new products and 150+ variants launched in FY23. Highest annual and quarterly revenue*.
Slide 32: Tata Commercial Vehicles - New business update
Tata Commercial Vehicles - New business update TATA MOTORS Electric Mobility Completed all due E-Bus deliveries to DTC and Nagpur city in FY23 Started manufacturing and dispatches of CESL orders against 2800 ordered ~300 Ace EVs delivered in Q4, focus on ramping up supplies and orders Shared green p
Slide 33: Tata Passenger Vehicles
NEXONEY PUNCH TATA MOTORS Shailesh Chandra & PB Balaji Tata Passenger Vehicles (Includes Tata PV, EV India, FIAPL JO results and international business (PV+EV))
Slide 34: Tata Passenger Vehicles - Volumes
RETAILS Tata Passenger Vehicles - Volumes Tata Passenger Vehicles |India business | Volumes WHOLESALES Wholesales (incl. exports) Wholesales (incl. exports) (K units) (K units) YoY 9.6% Exports ΥΟΥ 45.4% Exports 541.0 2.5 132.3 135.6 123.6 0.8 0.5 1.0 123.1 131.3 134.8 Q4 FY22 Q3 FY23 Q4 FY23 Retail
Slide 35: EVs continue to witness strong growth; 16K vehicles sold in Q4
EV's continue to witness strong growth; 16K vehicles sold in Q4 Tata Passenger Electric Vehicles | Domestic Domestic Volumes VAHAN registration market share(1) TATA MOTORS 47,792 86.5% 83.9% 72.0% 19,105 4,218 FY21 FY22 FY23 FY21 FY22 FY23 51 Network Cities ■Dealerships 250 165 143 97 75 450 Chargin
Slide 36: Q4: Revenue 12.1 KCr, EBITDA 7.3%, PBT(bei) positive
Q4: Revenue * 12.1 KCr, EBITDA 7.3%, PBT(bei) positive Consistently delivering volumes growth, positive EBIT margins and PBT TATA MOTORS FY23 | Tata Passenger Vehicles | IndAS, KCr Global wholesales (K units) Q1 FY23 130.4 Q2 FY23 142.8 Q3 FY23 132.3 Q4 FY23 135.5 Q4 FY22 123.6 Y-o-Y FY23 FY22 Y-o-Y
Slide 37: EBIT at 1.4% (+20 bps); PBT (bei) positive
EBIT at 1.4% (+20) bps; PBT (bei) positive Margins improve on better volumes, realisations, variable costs offset by FME and employee costs Q4FY23 | Tata Passenger Vehicles | IndAS, * Cr TATA MOTORS * Cr. IndAS 42 119 30 248 FME: *(115) Cr Employee cost: *(103) Cr D&A and PDE: *(69)Cr Other fixed ex
Slide 38: Business update
Business update Highest ever sales in FY23; EV adoption increasing at a rapid pace Tata Passenger and Electric Vehicles Industry PV +EV Key Highlights • Highest ever wholesale: ~3.9 mn (FY23) Industry wholesale grew by 27% in FY23 vis- à-vis FY22 • SUV share increased by 300bps to 43% EV industry gr
Slide 39: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. NEXON TATA MOTORS
Slide 40: Investment Spending in FY23 6.4 KCr
Investment Spending in FY23 € 6.4 KCr FY24 capex to increase further to ~8 KCr as electrification investments step up FY23 | Tata Motors Domestic Business(1) |IndAS, * Cr TATA MOTORS Connecting Aspirations PV+EV CV 2,725(2) 6,419 639 2,086 2,474 1,642 3,694 899 2,052 1,835 743 3,945 936 1,859 1,116
Slide 41: Q4 FY23 Free Cash Flows ~3.8 KCr
Q4 FY23 Free Cash Flows ~ 3.8 KCr Strong cash profits driving positive cash flows Q4 FY23 | Tata Motors Domestic Business (CV+PV) |IndAS, Cr(1) Payables, acceptances * 749 Cr Trade receivables * 15 Cr Inventories * 983 Cr Others * 870 Cr 2,894 (71) 1,379 1,586 2,586 (1,395) (311) TATA MOTORS Connect
Slide 42: TMF: Getting back on track for a normalized performance in FY24
TMF: Getting back on track for a normalized performance in FY24 Concerted collection efforts delivering results; GNPA down by 2.6% Q-o-Q FY23 |Tata Motors Finance | IndAS, ( Cr INR) TATA Motorsfinance driven by trust IndAS CV Market Share PBT ROE (Pre-tax) FY22 FY23 27% 17% 101 (993) 2.1% NA AUM 45,
Slide 43: Credit rating indicators continue to improve
Credit rating indicators continue to improve S&P upgrades rating by 1 notch, ICRA revises outlook to positive Rating Agencies Moody's S&P CRISIL ICRA CARE Long Term Rating B1/Stable BB / Stable AA- / Stable AA- / Positive AA- / Stable CCopyright, Confidential, Tata Motors Limited TATA MOTORS Connect
Slide 44: Investor day
Investor day TATA MOTORS Connecting Aspirations JLR 416 XCP TATA MOTORS Tata Motors India Investor Day Wednesday, June 7, 2023 Mumbai, India Jaguar Land Rover Investor Day Monday, June 12, 2023 Gaydon, Warwick, UK. 44
Slide 45: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook • We remain optimistic on demand despite near term uncertainties while anticipating moderate inflation • Aim to improve further and deliver a strong performance in FY24 • TATA
Slide 46: Q&A session
TATA D NEXONEY Q&A session Please submit your questions in the Q&A textbox Thank you Please mention your name and name of the organization you represent along with the questions TATA MOTORS 416 XCP 46
Slide 47: Tata Motors Group: Additional details
Tata Motors Group: Additional details Results for the quarter ended March 31, 2023 TATA MOTORS 47
Slide 48: Tata Motors Group Financials Consolidated - Quarter ended March 31, 2023
Tata Motors Group Financials Consolidated Revenue from operations Grant income / incentives Expenses: Quarter ended March 31, 2023 TATA MOTORS JLR Tata Commercial Vehicles 71,463 21,240 833 107 Rs Cr. IndAS Tata Passenger Vehicles Others* Consolidated 12,093 77 1,136 1,05,932 28 1,045 Cost of materi
Slide 49: Tata Motors Group Financials Consolidated - Quarter ended March 31, 2022
Tata Motors Group Financials Consolidated Quarter ended March 31, 2022 TATA MOTORS Rs Cr. IndAS JLR Tata Commercial Vehicles Tata Passenger Vehicles Others* Consolidated Revenue from operations Grant income / incentives Expenses: 48,023 18,529 10,491 1,396 78,439 491 69 101 (2) 660 Cost of materials
Slide 50: Tata Motors Group Financials Consolidated - Year ended March 31, 2023
Tata Motors Group Financials Consolidated TATA MOTORS Rs Cr. IndAS Year ended March 31, 2023 JLR Revenue from operations Grant income Expenses: 2,22,860 Tata Commercial Vehicles 70,816 Tata Passenger Others* Consolidated Vehicles 2,133 316 47,868 431 4,424 33 3,45,967 2,913 Cost of materials consume
Slide 51: Tata Motors Group Financials Consolidated - Year ended March 31, 2022
Tata Motors Group Financials Consolidated TATA MOTORS Rs Cr. IndAS Year ended March 31, 2022 JLR Tata Commercial Vehicles Tata Passenger Vehicles Others* Consolidated Revenue from operations Grant income Expenses: 187,697 52,287 31,515 6,955 1,468 184 465 7 278,454 2,125 Cost of materials consumed (
Slide 52: Tata Motors Group Financials Jaguar Land Rover Q4 FY23 & FY23
Tata Motors Group Financials Jaguar Land Rover Q4 FY23 & FY23 | IFRS, £m JAGUAR LAND ROVER Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Q4 v Q4 YoY Change Q3 v Q4 QoQ Change FY22 v FY23 YoY Change Revenues Material and other cost of sales Employee costs Other (expense)/income 4,767 6,041 7,102 18,320 22,809 2,
Slide 53: Q4 retails of 103k, up 21% QoQ, 30% YoY
FULL YEAR Q4 retails of 103k, up 21% QoQ, 30% YoY Full year retails were down 6% compared to the prior year FY23 | Brands | Retails* | Units in 000's RANGE ROVER DEFENDER Q4 50.9 40.7 36.7 DISCOVERY JAGUAR 23.6 19.8 15.5 14.6 14.5 15.4 12.1 12.9 9.7 JAGUAR LAND ROVER TOTAL 102.9 84.8 79.0 Q4 Q3 Q4 Q
Slide 54: Q4 retails were higher in all regions compared to the prior year
FULL YEAR Q4 Q4 retails were higher in all regions compared to the prior year Full year retails lower in all regions except UK compared to the prior year FY23 | Brands | Retails* | Units in 000's JAGUAR LAND ROVER 14.6 12.4 UK Q4 Q3 Q4 FY22 FY23 63.5 64.0 N. AMERICA 23.6 22.3 20.6 19.8 EUROPE CHINA
Slide 55: Strong H2 performance
Strong H2 performance Quarter on quarter improvement in all metrics throughout the year FY23 IFRS, £m REVENUE EBIT 4,406 7,102 6,041 5,260 JAGUAR LAND ROVER 6.5% 3.7% 1.0% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 (4.4)% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 PBT (bei) (173) 368 265 FREE CASH FLOW (15) 815 490 (524)
Slide 56: Favourable Q4 YoY operational FX offset partially by hedging
Favourable Q4 YoY operational FX offset partially by hedging JAGUAR LAND ROVER Total FX £137m favourable after other FX revaluation, offset partially by unrealised commodity revaluation Q4 FY23 YoY | IFRS, £m (81) 113 32 54 51 (99) 137 38 Operational Exchange (1) Realised FX hedges FX Impact on EBIT
Slide 57: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR IFRS, £m Debt maturity profile IndAS * Crores Total 6,789 816 TATA MOTORS Tata Domestic Business* Debt maturity profile Total 15,392 836 1,158 1,891 13,398 Undrawn RCF 1520 1,158 5,078 260 4,083 2,364 3,074 2,375 817 120 766 CY23 CY2
Slide 58: China JV continues to deliver improved financial performance
China JV continues to deliver improved financial performance Q4 FY23 | IFRS, £m JAGUAR LAND ROVER (Presented on 100% basis) Q4 Q3 Q4 FY22 FY23 FY22 FY23 FY23 Q4 v Q4 YoY Change Q3 v Q4 QoQ Change FY22 v FY23 YoY Change Retail volumes ('000 units) 11.0 12.0 12.7 54.0 50.9 1.7 0.7 (3.1) Wholesale volu