Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q3 FY2024 Earnings Presentation
47 slides from Tata Motors Passenger Vehicles's earnings presentation, Feb 2, 2024
Slide 1: Exchange filing cover letter for investor presentation
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 February 2, 2024 Sc no – 18108 Dear Sir/Madam, Sub: Submissio
Slide 2: Tata Motors Group Results for quarter ended December 31, 2023
Tata Motors Group Results for quarter ended December 31, 2023
Slide 3: Safe harbour statement and other details
Other Details Safe harbour statement • Presentation format : The results provided represent the details on consolidated segment level. The operating segment comprise of Automotive segment and Statements in this presentation describing the objectives, projections, estimates others. and expectations o
Slide 4: Product and other highlights
Product and other highlights All-new Intra V70 pickup, Intra V20 Gold pickup Production commenced at state-of-the-art Introduced first car “Punch.ev” on the and Ace HT+ launched new facility in Sanand advanced Pure EV architecture. MOUs for 17K+ public chargers, dedicated EV showrooms Waiting list f
Slide 5: Q3: Revenue ₹110.6KCr, EBITDA 14.3%, PBT(bei) ₹7.6KCr
Q3: Revenue ₹ 110.6KCr, EBITDA 14.3%, PBT(bei) ₹ 7.6KCr Performance continues to improve across all businesses. Q 3 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 + 4.4KCr ₹KCr YoY + 1.1KCr ₹KCr YoY 25.0 % YoY + 390 bps 7.6 105.1 110.6 88.5 6.1 7.5 8.3
Slide 6: EBIT 8.3%; Net Auto Debt reduces to ₹29.2KCr
EBIT 8.3%; Net Auto Debt reduces to ₹ 29.2KCr Net debt reduces by 9.5K Cr in Q3; on track to achieve deleveraging targets Q 3 F Y 2 4 | C o n s o l i d a t e d | IndAS Revenue ₹ KCr 1.4 4.0 0.6 Profitability (EBIT) ₹ C r 16.1 110.6 88.5 18.2% 1.7% 4.5% 0.6% 25.0% increase Q3FY23 Volume & Mix Price T
Slide 7: 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 December 31, 2023 6
Slide 8: Q3 Revenue £7.4B, EBIT 8.8%, PBT(bei) £627M
Q3 Revenue £7.4B, EBIT 8.8%, PBT(bei) £627M Q3 financial performance significantly improved QoQ and YoY; Q3 YTD significantly improved YoY Q3 FY24 | Jaguar Land Rover | IFRS, £m Revenue EBIT £m PBT (bei)1 FCF YoY +22% % YoY +510 bps YoY +0.4 b YoY + 0.1 b ₹£m ₹£m 6,857 7,375 8.8 6,041 626 Q3 FY24 7.
Slide 9: Q3 FY24 Performance highlights
Q3 FY24 Performance highlights VOLUME & REVENUE Wholesales of 101k, up 27% YoY and 4% QoQ, the highest wholesales in 11 quarters during the period. Retails of 109k, up 29% YoY and 2% QoQ. Range Rover / Range Rover Sport production continues to ramp up, increasing from 2,800 in Q2 to 2,900 units per
Slide 10: Q3 Wholesales of 101K, up 27% YoY
Q3 Wholesales of 101K, up 27% YoY and up 4% QoQ YTD Wholesales of 291k, up 28% year-on-year FY24 |Wholesales Brands | Units in 000’s TOTAL 52.9 101.0 96.8 44.3 40.2 79.6 30.5 27.1 23.8 Q3 13.5 12.1 8.5 8.9 10.0 5.6 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 FY23 FY24 FY24 FY23 FY24 FY24 FY23 FY24
Slide 11: Q3 Wholesales by region
Q3 Wholesales up in UK, China & North America compared to Q2 YTD Wholesales higher in all regions compared to the prior year FY24 |Wholesales Regions | Units in 000’s UK N. AMERICA EUROPE CHINA OVERSEAS JLR POWERTRAIN MIX(RETAILS) 26.2 26.3 26.5 21.2 21.1 20.4 19.7 18.0 16.5 24% 15.2 15.0 28% 13.6 1
Slide 12: Q3 FY24 PBT £627m up £362m yoy
Q3 FY24 PBT £627m up £ 362m yoy Favourable volume and reduced material costs, offset partially by FMI, admin and FX revaluation Q3 FY24 | IFRS, £m FME & Selling (124) Operational FX (231) Admin (68) Realised FX derivatives 210 Pricing 152 Other (25) FX revaluation (129) VME (0.6)% Unre
Slide 13: Free cash flow positive £626m in Q3 FY24
Free cash flow positive £626m in Q3 FY24 Record Q3 YTD free cash flow of £1.4b | IFRS, £m Free cashflow before D&A 547 working capital £379m Working capital detail (98) Payables 269 Receivables 119 712 Inventory (86) Other (55) (862) 1,241 247 627 626 PBT Non-Cash & Cash Cash Profit Investme
Slide 14: Total Q3 FY24 Investment £0.9b
Total Q3 FY24 Investment £0.9b Engineering capitalization rate 63%, reflecting expected maturation of vehicle programmes 266 862 220 596 376 Capitalised Expensed Total Capital Total Engineering Engineering Engineering Investment Investment FY24 YTD 1,064 632 1,696 638 2,334 Q3 FY23 212 234 446 176 6
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Slide 16: JLR now achieving consistently improved financial performance
JLR now achieving consistently improved financial performance EBIT between 6.5% - 9.0% for four consecutive quarters More consistent performance demonstrates improvement in JLR operating model to manage ongoing and new challenges, including: The order book continues to reduce as expected as increase
Slide 17: Electrification timeline updated
Electrification timeline updated to reflect continued strong demand for existing products on flexible MLA architecture and most recent global BEV adoption trends First Jaguar BEV on BEV available on new dedicated JEA all models 100% sales platform Net-zero zero tailpipe carbon Total of 4 Land Rover
Slide 18: Range Rover Electric waiting list opened in December
Range Rover Electric waiting list opened in December Over 16,000 clients signed up since opening • Most refined RR ever created, with a unique active road noise cancellation configuration and sound design • 800V electrical architecture to enable ultra-fast charging on public networks • Peerless all-
Slide 19: Looking ahead
Looking ahead On track to achieve profitability and cashflow targets EBIT margin expected to be over 8% target for FY24 Investment spending expected to be OUTLOOK £3.2bn in FY24 Continue to expect operating cashflow to support net debt <£1bn by end of FY24 and positive net cash in FY25 Focus on bran
Slide 20: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International) 19
Slide 21: Registration (Vahan) market share
Registration (Vahan) market share Consistent market share gains in Heavy and Medium; Actions to step up LGV market shares underway. Tata Commercial Vehicles | Domestic market share* Commercial Vehicles 41.7% 39.1% 39.7% 38.7% FY23 Q1 FY24 Q2 FY24 Q3 FY24 HGV+HMV MGV LGV Passenger 44.2% 49.6% 50.4% 5
Slide 22: Q3: Revenue ₹20.1KCr, EBITDA 11.1%, PBT(bei) ₹1.7KCr
Q3: Revenue ₹ 20.1KCr, EBITDA 11.1%, PBT(bei) ₹ 1.7KCr Margins continue to improve; YTD PBT (bei) at ₹ 4.1KCr Q 3 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 19.2 % % YoY + 270 bps % YoY + 270 bps YoY + 0.8KCr 20.1 20.1 11.1 1.7
Slide 23: EBIT at 8.6% (+270 bps); PBT (bei) ₹1.7K Cr
EBIT at 8.6% (+270 bps); PBT (bei) ₹ 1.7K Cr Margins improve on richer mix, higher realizations Q 3 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 : ₹(139) Cr Employee cost: ₹ (126) Cr Others : ₹ (95) Cr EBIT % 5.9% 2.4% 4.4% (1.9)% (2.2)% 0.0% 8.6% For analytica
Slide 24: Tata Commercial Vehicles – Overall update
Tata Commercial Vehicles – Overall update Key Highlights Bright Spots Focus areas • Tata Motors domestic (Wholesale) volumes grew • Customer Sentiment Index remains strong • Improve realisations whilst growing Vahan share by ~1% YoY in Q3 FY24, however declined 8% QoQ by leveraging superior product
Slide 25: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility TML Smart City Mobility Solutions Digital • ACE EV: 2300+ vehicles plying; 839 nos • 1200+ EV buses deployed up to Dec’23; total • Fleetedge continues to build momentum sold in Q3 FY24. Gaining traction in Tier 2 of 2000+ EV Buses oper
Slide 26: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & PB Balaji (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV)) 25
Slide 27: Strong growth in Vahan market share in Q3
Strong growth in Vahan market share in Q3 Penetration of CNG cars & EVs at 26%; Portfolio emissions well below CAFÉ norms Tata Passenger Vehicles |India business Volumes VAHAN Domestic Market share(1) Powertrain Mix Tata Motors PV CAFE Compliance (CO2 in g/km) Petrol Diesel EV CNG TML PV Emissions C
Slide 28: EVs growth trajectory continues at ~21% YoY
EVs growth trajectory continues at ~21% YoY volume increase Tata.ev exclusive channel to drive growth in focus markets; Open collaboration to help expand charging infra Tata Passenger Electric Vehicles Wholesales (incl. exports ) EV Volumes VAHAN registration market share(1) (K units) YoY 20.9% 80.1
Slide 29: Q3: Revenue ₹12.9KCr, EBITDA 6.6%, PBT(bei) positive
Q3: Revenue ₹ 12.9KCr, EBITDA 6.6%, PBT(bei) positive EBIT improves consistently Q 3 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 10.6 % YoY (30) bps % YoY +60 bps YoY +0.1KCr ₹KCr 12.2 12.9 6.9 0.4 11.7 6.5 6.6 Q3 FY24 2.1 0.3 0.3 1.8
Slide 30: EBIT at 2.1% (+60 bps); PBT (bei) 0.4K Cr
EBIT at 2.1% (+60 bps); PBT (bei) 0.4K Cr Margins improve on account of cost saving in commodities, offsetting higher fixed expenses ₹ Cr. IndAS Q 3 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 : ₹(50)Cr PV (ICE) and EV financials split Employee cost : ₹(77) Cr D&A and PDE :
Slide 31: Business update – Q3 FY24
Business update – Q3 FY24 Y-o-Y Wholesale volume growth in Q3; Vahan market share continues to expand Key Highlights Bright spots Challenges • 4.1mn units sold in CY23 – highest ever in a • Strong growth in CY23 for emission • Market growth rate in CY24 likely to CY friendly powertrains – CNG & EVs;
Slide 32: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 31
Slide 33: Q3 FY24 Free Cash Flows ₹0.6 KCr
Q3 FY24 Free Cash Flows ₹ 0.6 KCr Cash profits well ahead of Capex Q 3 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) Inventories ₹ 950 Cr Trade receivables ₹ 789 Cr Payables, acceptances ₹ 15 Cr Others ₹ 120 Cr (2) Q3 FY24 YTD FY24 4,232 4,044 (4
Slide 34: Investment Spending in Q3 FY24 ₹2.2KCr
Investment Spending in Q3 FY24 ₹ 2.2KCr FY24 investment spending estimated at ~ ₹8 KCr Q 3 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 1,073 2,199 221 728 852 554 1,126 280 507 572 274 1,471 227 619 345 Capitalised Expensed Total Capital & Other Tot
Slide 35: TMF: Business fundamentals strengthening
TMF: Business fundamentals strengthening Prudent sourcing and concerted collection efforts continues to drive up portfolio quality 9 M F Y 2 4 | T a t a M o t o r s F i n a n c e ( C o n s o ) | IndAS, ₹ ( C r I N R ) • Collection Efficiency continues to improve in Q3 FY24 at 98.7% (vs Q2 FY24 IndAS
Slide 36: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook • We remain positive on all three auto businesses • Q4 to improve sequentially on seasonality, new launches and improving supplies at JLR • Confident of delivering on our dele
Slide 37: 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 36
Slide 38: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended December 31, 2023 37
Slide 39: Q3 FY24: Tata Motors Group Financials
Q3 FY24: Tata Motors Group Financials Consolidated Quarter ended December 31, 2023 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 76,655 20,123 12,910 889 1,10,577 Grant income / incentives 582 61 92 12 747 Expenses : Cost of materials
Slide 40: Q3 FY23: Tata Motors Group Financials
Q3 FY23: Tata Motors Group Financials Consolidated Quarter ended December 31, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 58,863 16,886 11,671 1,069 88,489 Grant income / incentives 463 67 144 1 675 Expenses : Cost of materials
Slide 41: Jaguar Land Rover financials
Tata Motors Group Financials Jaguar Land Rover Q 3 F Y 2 4 & F Y 2 4 | I F RS , £ m Q3 v Q3 YoY Q3 v Q2 QoQ FY24 v FY23 Q3 FY23 Q2 FY24 Q3 FY24 FY23 YTD FY24 YTD Change Change YoY Change Revenues 6,041 6,857 7,375 15,707 21,135 1,334 518 5,428 Material and other cost of sales (3,707) (4,166) (4,237)
Slide 42: Q3 FY24 PBT £627m
Q3 FY24 PBT £627m Favourable volume and mix and contribution costs offset partially by unfavourable admin and FMI Q3 FY24 | IFRS, £m Operational FX 84 Volumes 79 Admin (49) Realised FX derivatives (62) Mix 121 Pricing 79 FME & Selling (30) Revaluation 53 Other (48) VME (1.5)% Other
Slide 43: Q3 YoY operational FX unfavourable, offset partially by hedging
Q3 YoY operational FX unfavourable, offset partially by hedging Total Q3 FX and commodity impact £(136)m unfavourable YoY, primarily reflecting lower favourable FX revaluation YoY Q 3 F Y 2 4 Y o Y | I F RS , £ m (21) (69) (150) (136) (231) (60) 210 14 Operational Exchange Realised FX hedges FX Impa
Slide 44: Q3 Retails of 109K, up 29% YoY
Q3 Retails of 109K, up 29% YoY and up 2% QoQ YTD Retails of 317k, up 26% year-on-year F Y 2 4 | R e t a i l s | B r a n d s | U nits in 0 0 0 ’s TOTAL 48.8 51.5 106.6 109.1 40.7 84.8 30.3 28.8 Q3 19.8 17.1 14.5 16.3 9.7 11.2 11.7 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 Q3 Q2 Q3 FY23 FY24 FY24 FY23 FY24
Slide 45: Q3 Retails by region
Q3 Retails were higher in UK, North America & China compared to Q2 YTD Retails were higher in all regions compared to the prior year F Y 2 4 | R e t a i l s | R e g i o n s | U nits in 0 0 0 ’s UK N. AMERICA EUROPE CHINA OVERSEAS JLR POWERTRAIN 27.3 27.8 MIX(RETAILS) 25.0 23.6 23.3 20.6 21.7 19.1 19
Slide 46: Debt profile
Debt profile Strong liquidity; debt maturities well spread out; gross debt reduction Jaguar Land Rover Tata Domestic Business* IFRS, £m Debt maturity profile IndAS Debt maturity profile Total Undrawn Total ₹ Crores RCF1,520 5,828 10,507 994 717 1,431 1,895 Undrawn RCF 1520 4,254 3,680 6,960 7,618 55
Slide 47: China JV continues to deliver improved financial performance
China JV continues to deliver improved financial performance Q 3 F Y 2 4 & F Y 2 4 | I F RS , £ m (Presented on 100% basis) Q3 v Q2 FY24 v FY23 Q3 Q2 Q3 Q3 v Q3 YoY FY 23 YTD FY 24 YTD QoQ YoY Change FY23 FY24 FY24 Change Change Retail volumes ('000 units) 12.0 13.1 13.4 38.2 39.4 1.4 0.3 1.2 Wholes