Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors Group — Q1 FY2023 Earnings Presentation
48 slides from Tata Motors Passenger Vehicles's earnings presentation, July 2022
Slide 1: Tata Motors Group Results for quarter ended 30th June 2022
Tata Motors Group Results for quarter ended 30 th June 2022
Slide 2: Safe harbour statement
Safe harbour statement Other Details • Presentation format : The results provided represent the details on Statements in this presentation describing the objectives, projections, consolidated segment level. The operating segment comprise of Automotive estimates and expectations of Tata Motors Limite
Slide 3: Product and other highlights
Product and other highlights Incorporated ‘TML Smart City Mobility Solutions MOU with Lithium Urban Technologies for Extended portfolio with Nexon XM + (S) and Ltd’ for undertaking urban mass mobility 5000 EV;s, BluSmart Electric Mobility for Nexon EV Prime business 10,000 XPRES T EVs Great new prod
Slide 4: Q1: Revenue ₹71.9KCr, EBITDA 7.4%, PBT(bei) ₹(5.0)KCr
Q1: Revenue ₹ 71.9KCr, EBITDA 7.4%, PBT(bei) ₹ (5.0)KCr JLR impacted by supply constraints; PBT (bei) impacted further by revaluation of FX and commodities hedges Q 1 F Y 2 3 | C o n s o l i d a t e d | IndAS, ₹ K C r PBT (bei) Global Wholesales Revenue ₹KCr (K units) ₹KCr YoY 8.3 % YoY +48.2 % 78.4
Slide 5: EBIT (0.7)%; Net Auto Debt ₹60.7 KCr
EBIT (0.7)%; Net Auto Debt ₹ 60.7 KCr EBIT improved marginally YoY. Adverse working capital impacts Net Auto Debt Q 1 F Y 2 3 | C o n s o l i d a t e d | IndAS Revenue ₹ KCr 3.0 3.2 2.1 (2.8) 66.4 71.9 4.6% 4.9% (4.3)% 3.1% 8.3% increase Q1FY22 Volume & Mix Price Translation Others Q1FY23 Profitabil
Slide 6: Jaguar Land Rover Automotive plc
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL Chief Financial Officer Results for the quarter ended 30 th June 2022 6
Slide 7: Revenue £4.4b, EBIT (4.4)%, FCF negative at £(769)m
Revenue £4.4b, EBIT (4.4)%, FCF negative at £(769)m Volume & mix (chips, New RR/RRS ramp up, China lockdowns), inflation, FX/commodity reval Q 1 F Y 2 3 | J a g u a r L a n d R o v e r | I F RS , £ m Retails Revenue PBT (bei) (K units) £m £m YoY (11.3) % YoY (36.7)% 124.5 4,966 4,767 9 4,406 79.0 78
Slide 8: Q1 FY23 Performance highlights
Q1 FY23 Performance highlights • Volumes constrained by ongoing semiconductor shortages, slower than expected new Range Rover / Range Rover Volume & Sport ramp up, and China Covid lockdowns Revenue • Retails flat QoQ; wholesales down by 6% compared to the prior quarter as a result of production cons
Slide 9: Q1 retails flat QoQ; wholesales slightly down
Q1 retails flat QoQ; wholesales slightly down Wholesale model mix weaker reflecting New Range Rover, New Range Rover Sport ramp up F Y 2 3 | B r a n d s | U n its in 0 0 0 ’ s 124.5 59.1 79.0 78.8 36.7 37.0 RETAILS* 29.2 19.1 17.2 15.5 14.5 14.6 15.2 12.1 12.1 84.4 41.3 37.8 WHOLESALES* 33.0 76.5 15
Slide 10: Higher retails in UK and Europe QoQ offset by decreases elsewhere
Higher retails in UK and Europe QoQ offset by decreases in other markets Wholesales lower in most markets, up in Europe F Y 2 3 | R e g i o n s | U n its in 0 0 0 ’ s 31.4 27.0 RETAILS* 23.7 25.8 19.8 19.6 19.5 18.5 14.6 16.0 16.6 14.0 13.2 11.9 10.7 34% 36% 34% ---------66% electrified ---------- W
Slide 11: Weak Q1 profitability reflects volume & mix, inflation, FX/commodity reval
Weak Q1 profitability reflects volume & mix, inflation, FX/commodity reval Lower volume & mix due to chip supply, RR/RRS ramp up, China lockdowns Q 1 F Y 2 3 | I F RS , £ m Volumes (221) VME Material Eng’g Operational FX 218 (103) (73) (3.1)% to 66 cost capitalised Before (1.4)% Realised FX Mix (115
Slide 12: Free cashflow £(769)m in Q1 primarily working capital
Free cashflow £(769)m in Q1 -- primarily reflects working capital Free cashflow excluding working capital £(153)m Q1 FY23 | IFRS, £m Free cashflow excluding Payables (38) D&A 477 working capital £(153)m Receivables (75) Inventory (358) Other (145) 961 (101) 336 (489) (524) (769) (616) PBT* Non-cash
Slide 13: Cash flow breakeven remains around 300k to 350k wholesales
Cash flow breakeven remains around 300k to 350k wholesales U n its 0 0 0 ’ s 660 540 400 Annualised 350 cash flow 330 320 breakeven wholesales FY19 FY20 FY21 FY22 Q1 FY23 FY23 Quarterly Breakeven Wholesales 165 135 100 83 80 85 13
Slide 14: Total Q1 investment £489m
Total Q1 investment £489m Engineering capitalisation rate 25% - will increase as new products reach capitalisation triggers Q1 FY23 | IFRS, £m 140 489 259 349 90 Capitalised Expensed Total Capital Total Engineering Engineering Engineering Investment Investment Q1 FY22 132 188 320 251 571 14
Slide 15: Business Update
BUSINESS UPDATE 15
Slide 16: Production constraints expected to improve in Q2
Production constraints expected to improve in Q2 Improved visibility of chip supply and production ramp up of new Range Rover & Range Rover Sport Chip supply constraints in Q1 compounded by: • Slower than expected ramp up of Range Rover and Range Rover Sport due a combination of factors • o n g o i
Slide 17: Strong demand continues – record order bank of 200k units
Strong demand continues – record order bank of 200k units New Range Rover, New Range Rover Sport & Defender account for over 60% of order bank ORDER BANK 200 168 155 125 110 47 41 37 62 46 29 33 31 20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 New Range Rover Sport New Range Rover Defender Other 17
Slide 18: Defender 130 revealed on 31 May 2022
Defender 130 revealed on 31 May 2022 Sales expected from Q2 FY23 Land Rover realises its original vision for a family of Defender vehicles with the introduction of the Defender 130, ideal for adventures for up to eight occupants HIGHLIGHTS • Adventure for all – New Defender 130 adds another dimensio
Slide 19: Refocus improvements of £250m in Q1 FY23
Refocus improvements of £250m in Q1 FY23 On track to achieve £1b+ target in full year £m’s REFOCUS STATUS Q1 REFOCUS PERFORMANCE MARKET PERFORMANCE • £100m value contribution in Q1 FY23 • Higher sophistication in data-led pricing decisions has driven 750 improved profitability 1,000 COSTS • Continue
Slide 20: Significant inflation headwinds
Significant inflation headwinds Expect Refocus revenue and cost optimisation actions to mitigate inflation FY22 MATERIAL AND OTHER COSTS OF SALES TARGET £1B OF REFOCUS SAVINGS IN FY23 Pillar Description Action 1 Quality Further reduce warranty cost Key inflation linked costs: Programme Delivery & 2
Slide 21: Inventories at historically low levels as supply remains constrained
Inventories at historically low levels as supply remains constrained Inventory pipeline refilled somewhat in the quarter Units 000’s 80 70 60 50 40 30 20 10 0 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 JLR Inventory R
Slide 22: Expect significant improvement in sales, profit and cash flow over FY23
Expect significant improvement in sales, profit and cash flow over FY23 Supported by improving chip visibility and RR/RR Sport ramp up P R IO R IT IE S AN D O UT LO O K FO R FY 2 3 • Im pro v ed v isibility o f chip supply thro ugh senio r supplier engagem ent including partnership agreem ents co m
Slide 23: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International)
Slide 24: Market shares at 42.5%
Market shares at 42.5% Shift to “Demand Pull” supply chain for sustainable market share gains. Tata Commercial Vehicles | Domestic market share Commercial Vehicles 42.4% 44.9% 42.5% FY 21 FY22 Q1 FY23 MHCV ILCV SCV Buses & Vans 58.1% 58.2% 54.6% 49.0% 48.5% 46.9% 45.9% 44.8% 39.1% 40.6% 37.5% 36.0%
Slide 25: Tata Commercial Vehicles - Volumes
Tata Commercial Vehicles - Volumes Strong YoY growth owing to increased activity in road construction, mining, and growth in agriculture and e-commerce Tata Commercial Vehicles |India Business Volumes Wholesales (incl. exports ) (K units) Retails (domestic) Exports YoY 104.1% (K units) YoY 118.6% 11
Slide 26: Q1: Revenue ₹16.3KCr, EBITDA 5.5%, PBT(bei) ₹0.3 KCr
Q1: Revenue ₹ 16.3KCr, EBITDA 5.5%, PBT(bei) ₹ 0.3 KCr Stable commodity prices supports margins despite lower QoQ volumes Q 1 F Y 2 3 | 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 Wholesales Revenue PBT (bei) YoY + 100.3 % ₹KCr YoY + 107.2 % (K units) ₹KCr 122.3 18.5 103.7 16.3 0.6
Slide 27: EBIT at 2.8% (+690) bps; PBT (bei) ₹0.3 KCr
EBIT at 2.8% (+690) bps; PBT (bei) ₹ 0.3 K Cr Higher volumes and stable commodity prices improve margins yoy Q 1 F Y 2 3 | 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 FME ₹(46) Cr Employee cost ₹ (203) Cr D&A and PDE : ₹10Cr Others : ₹ (58) Cr Unrealized FX, commodity hedge
Slide 28: Tata Commercial Vehicles – Overall update
Tata Commercial Vehicles – Overall update Robust industry growth in Q1, fundamentals remain strong, cautiously optimistic despite inflationary head winds Key Highlights Bright Spots Focus areas • Industry continued recovery and grew by • Trucker’s sentiment index at 2 year high in • International ma
Slide 29: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility TML Smart City Mobility Solutions Ltd. Digital Delivered ~100 electric buses in Q1, • TML-Smart city mobility solutions ltd. • Fleet edge - Adoption and active usage Cumulative ~715 e-buses running on incorporated as wholly owned sub
Slide 30: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & PB Balaji (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV)) 30
Slide 31: Tata Passenger Vehicles – Sustained volume growth
Tata Passenger Vehicles – Sustained volume growth Actions underway to enhance capacity and debottlenecking supply to grow further Tata Passenger Vehicles |India business Volumes Wholesales (incl. exports ) (K units) Retails (domestic) Exports (K units) YoY 101.7% YoY 132.2% 123.6 130.4 124.8 0.2 115
Slide 32: EV business reports highest quarterly sales
EV business reports highest quarterly sales Volume & Market Share Charging Infra Network 25,0 00 100 % 87% 88% 2681 90% 157 19,105 143 71% 20,0 00 80% 70% 2000 15,0 00 60% 97 50% 90 75 10,0 00 9,310 40% 30% 51 4,218 5,00 0 20% 450 10% - 0% FY 21 FY 22 Q1 FY23 FY21 FY22 Q1 FY23 FY21 FY22 Q1 FY23 Whol
Slide 33: Q1: Revenue ₹11.6KCr, EBITDA 6.1%, PBT(bei) breakeven
Q1: Revenue ₹ 11.6KCr, EBITDA 6.1%, PBT(bei) breakeven Strong momentum continues; FME phasing impacts sequential margin improvement Q 1 F Y 2 3 | 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 Wholesales Revenue PBT (bei) YoY + 101.7 % ₹KCr YoY + 122.5 % (K units) ₹KCr 130.4 11.6 123.6 1
Slide 34: EBIT at 0.9% (+750) bps; PBT (bei) breakeven
EBIT at 0.9% (+750) bps; PBT (bei) breakeven Volume, Mix & realisations aid margin improvement; FME phasing impacts sequential margin improvement Q 1 F Y 2 3 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ Cr ₹ Cr. IndAS FME : ₹(107) Cr Employee cost : ₹(107) Cr D&A and PDE : ₹(59)Cr Other fi
Slide 35: Business update: Tata Passenger and Electric Vehicles
Business update Tata Passenger and Electric Vehicles Bright spots Challenges • In Q1, Industry wholesales increased • Industry projected to grow to ~3.5mn • High inflation and interest rate may Industry 41% YoY as semiconductor supplies in FY23 impact auto demand adversely improved • Demand for EVs
Slide 36: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 36
Slide 37: Q1 FY23 Free Cash Flows ~₹(2.9) KCr
Q1 FY23 Free Cash Flows ~₹ (2.9) KCr Cash profits funds investments. Adverse working capital movements impact FCF. Q1FY23 | Tata Motors Domestic Business |IndAS, ₹ Cr* Payables, acceptances ₹ 77 Cr Trade receivables ₹ 919 Cr Inventories ₹ 1,282 Cr Stat liabilities and contractual dues ₹ 839 Cr Other
Slide 38: Investment Spending in Q1FY23 ₹1.1 KCr
Investment Spending in Q1FY23 ₹ 1.1 KCr FY23 capex to be stepped up further to ~ ₹ 6000 Cr; FCF to remain positive Q1FY23 | Tata Motors Domestic Business* |IndAS, ₹ Cr Q1FY23 | Domestic CV Business |IndAS, ₹ Cr Q1FY23 |Domestic PV+EV Business |IndAS, ₹ Cr *Includes details for TML, TMPVL, TPEML and
Slide 39: Tata Motors Finance: Managed AUM ₹45.1K Cr, PBT ₹71 Cr
Managed AUM ₹ 45.1K Cr, PBT ₹ 71 Cr & Pre-tax ROE of 5.1% Aspire for Growth (+15%), Asset quality (NNPA <5%), RoE > 10% Q 1 F Y 2 3 | T a t a M o t o r s F i n a n c e | IndAS, ₹ ( C r I N R ) • Disbursals at ₹4,737 Cr for Q1FY23 were up 186% YoY. IndAS Q1 FY22 Q4 FY22 Q1 FY23 Q1 FY22 was a low base
Slide 40: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook (FY23) • Demand to remain strong despite worries on inflation, geo-political situation. • Chip supply to improve further from Q2; Cooling commodity prices to aid improvement i
Slide 41: 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 41
Slide 42: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended 30 th June 2022 42
Slide 43: Tata Motors Group Financials (Q1 FY23)
Tata Motors Group Financials Consolidated Quarter ended June 30, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 43,056 16,270 11,556 1,052 71,935 Grant income / incentives 367 70 109 1 547 Expenses : Cost of materials consumed (26,
Slide 44: Tata Motors Group Financials (Q1 FY22)
Tata Motors Group Financials Consolidated Quarter ended June 30, 2021 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 51,795 7,854 5,194 1,563 66,406 Grant income / incentives 209 24 106 3 341 Expenses : Cost of materials consumed (32,49
Slide 45: Tata Motors Group Financials: Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q 1 F Y 2 3 | I F RS , £ m Q1 vs Q1 Q4 vs Q1 Q1 FY22 Q4 FY22 Q1 FY23 YoY QoQ Change Change Revenues 4,966 4,767 4,406 (560) (361) Material and other cost of sales (3,149) (2,807) (2,762) 387 45 Employee costs (592) (599) (570) 22 29 Other (expense)/inco
Slide 46: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR IndAS Tata Domestic Business* Total Total ₹ Crores IFRS, £m Debt maturity profile Debt maturity profile 18,626 7,897 701 791 1,132 2,277 16,703 RCF 1,500 865 227 4,919 5,201 1,132 3,245 3,608 2,972 777 1,193 484 119 289 1,763 CY22 CY
Slide 47: China JV achieves positive EBIT margin in Q1 despite Covid lockdowns
China JV achieves positive EBIT margin in Q1 despite Covid lockdowns EBITDA margin strongly positive Q 1 F Y 2 3 | I F RS , £ m (Presented on 100% basis) Q1 FY22 v Q1 FY23 Q4 FY22 v Q1 FY23 FY20 FY21 FY22 Q1 FY23 YoY QoQ Change Change Retail volumes ('000 units) 50.0 64.3 54.0 11.0 (3.8) - Wholesale
Slide 48: FX and commodity financial impact
FX and commodity financial impact Q1 FY23 v Q1 FY22 £(134)m, including £(236)m unfavourable fx / commodity revaluation Q 1 F Y 2 3 | I F RS , £ m Operational exchange1 n/a n/a n/a 134 218 2 Realised FX 2 (43) (114) (71) (116) Total FX impacting EBITDA & EBIT n/a n/a n/a 63 102 Revaluation of CA/CL a