Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q4 FY23 Earnings Presentation
58 slides from Tata Motors Passenger Vehicles's earnings presentation, May 2023
Slide 1: Tata Motors Group Results for quarter ended March 31, 2023
Tata Motors Group Results for quarter ended March 31, 2023
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 for the year – Tata Motors (India)
Product and other highlights for the year – Tata Motors (India) Launch of 5 CNG trucks, including India’s Launch of Tiago.EV, strong Acquisition of Ford Sanand Facility first in MHCV, introduction of new age response. complete ADAS Yodha 2.0, Intra V20 bi-fuel and Intra MOU with UBER for 25,000 XPRE
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 EMA (Electrified Modular Architecture) platform First of three reimagined Jaguar BEV models, a from this autumn to be all BEV with first model in 2025 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 F Y 2 3 | C o n s o l i d a t e d | IndAS, ₹ K C r 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
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. Q 4 F Y 2 3 | C o n s o l i d a t e d | IndAS Revenue ₹ KCr 8.2 0.6 19.2 (0.5) 105.9 78.4 24.4% 10.5% (0.5)% 0.7% 35.1% increase Q4FY22 Volume & Mix Price Translation Others Q4FY23 Profitability (EBIT)
Slide 7: Financials: Headline observations
Financials: Headline observations* Amongst the strongest quarters for TML Group HIGHEST EVER HIGHEST EVER STRONG PBT (bei) NET AUTO DEBT REVENUE EBITDA All auto verticals profitable REDUCTION QUARTER ₹ 105.9 K crs ₹ 14.1 K crs ₹ 5.0 K crs ₹ 13.8 K crs in Q4 HIGHEST EVER HIGHEST EBITDA STRONG PBT (be
Slide 8: Dividend ₹ 2 per share recommended
Dividend ₹ 2 per share recommended • The Board has recommended a dividend of • ₹ 2 per share for Ordinary share holders (100% of face value) and • ₹ 2.1 per share for DVR share holders • To be approved in the ensuing shareholders meeting • Resultant cash outflow would be ₹ 771 cr. 8
Slide 9: Jaguar Land Rover Automotive PLC
JAGUAR LAND ROVER AUTOMOTIVE PLC R I C H A R D M O LY N E U X Acting Chief Financial Officer Results for the quarter ended March 31, 2023 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 F Y 2 3 | J a g u a r L a n d R o v e r | I F RS , £ 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)
Slide 11: Q4 & FY23 Performance highlights
Q4 & FY23 Performance highlights • 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% Volume & Revenue • Range Rover / Range Rover Sport production is approaching
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 FY23 | Brands | Wholesales* | Units in 000’s TOTAL 47.8 94.6 37.8 40.2 76.5 79.6 27.5 23.8 QUARTER 15.9 13.3 9.5 9.6 10.0 9.7 5.6 Q4 Q3 Q4 Q4 Q3 Q4 Q4 Q3 Q4 Q4 Q3 Q4 Q4 Q3 Q4 FY22 FY23 FY23 FY22 FY23 FY2
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 FY23 | Regions | Wholesales* | Units in 000’s JLR POWERTRAIN MIX(RETAILS) UK N. AMERICA EUROPE CHINA OVERSEAS 26.2 22.0 21.0 20.3 19.0 19.3 18.0 16.4 27% QUA
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 Material Operational Volumes 272 Pricing 242 (230) SG&A (117) 113 cost FX Mix 335 VME Depn & Manu- (73) Realised FX (0.9)% to 23 (22) Amort. (81) facturing derivatives (0.5)% Emissions (35) L&O
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 Q4 FY23 | IFRS, £m Free cashflow excluding D&A 578 working capital £398m (80) 826 (716) 417 1,114 815 Q1 FY22 to Q4 FY23: 368 £(1,353)m PBT* Non-cash Cash Cash profit Investment
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, £m 660 2,353 966 1,693 727 FY23 Capitalised Expensed Total Capital Total Engineering Engineering Engineering Investment Investment FY22 455 839 1,294 742 2,03
Slide 17: Jaguar Land Rover Business Update
JAGUAR LAND ROVER BUSINESS UPDATE
Slide 18: Strength in average revenue in last five years
Strength in average revenue in last five years GBP 0 0 0 ’s AVERAGE REVENUE PER UNIT 80 70 60 50 40 30 FY19 FY20 FY21 FY22 FY23 Average revenue per unit = Revenue / wholesale volume 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* COMMENTARY 100 • Agreements in place with key suppliers now improving visibility of chip supply 90 • Expect gradual improvement to continue over FY24 80 • Wholesales in Q1 expected to be s
Slide 20: New Range Rover & Range Rover Sport continues to increase
New Range Rover & Range Rover Sport continues to increase Production approaching target levels FY23 AVERAGE WEEKLY RR/RRS PRODUCTION 2.600 2,300 1,600 1,100 Q1 Q2 Q3 Q4 Note: Approximately 46 weeks of production in each fiscal year due to planned shut down periods 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 REFOCUS SAVINGS IN FY23 MARKET PERFORMANCE • £600m value contribution • Primarily re-pricing and optimisation of available semi- conductor using
Slide 22: China market update
China market update JLR China FY23 profitability highest in 5 years with premium market volumes steady last 2 years TOTAL CHINA PREMIUM MARKET AND JLR SHARE AVERAGE NET VEHICLE REVENUE KEEPS STABILIZED WHILE NEV GROWING AN INCREASING TREND 3,903k 3,916k GBP 3,717k Import 100k 101k 91k Total China 56
Slide 23: Model developments
Model developments MY24 RANGE ROVER VELAR RANGE ROVER SPORT SV ON SALE NOW COMING SOON ▪ Velar offers the quietest experience on the road ▪ Hotly anticipated Range Rover Sport SV builds on legacy of revered ▪ Extended electric range offers introduction into everyday SVR electric luxury mobility of t
Slide 24: Looking ahead
Looking ahead Remain committed to consistent, competitive cash accretive growth while deleveraging the business OUTLOOK (FY24) • We remain optimistic on demand despite near term uncertainties while anticipating moderate inflation • Aim to improve further and deliver a strong performance in FY 24 • M
Slide 25: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International) 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* Vahan Ref Tonnage Commercial Vehicles HGV+HMV > = 13Ts 44.7% 41.7% MGV 7.5 to 12 Ts 43.1% 39.9% 41.1% LGV Upto 7.5ts HPV+MPV+LPV Passe
Slide 27: Tata Commercial Vehicles - Volumes
Tata Commercial Vehicles - Volumes Strong recovery lead by MHCV and CV passenger segment, offset by weaker exports Tata Commercial Vehicles |India Business Volumes Wholesales (incl. exports ) Wholesales (incl. exports ) (K units) (K units) YoY (2.7)% Exports YoY 15.6% Exports 413.1 WHOLESALES 119.8
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 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 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Y-o-Y FY23 FY22 Y-o-Y Global wholesales ( K units) 103.7 103.1 97.1 118.7 122.3 (3.0)% 422.6 367.5
Slide 29: EBIT at 8.6% (+520) bps; PBT (bei) ₹ 1.7 K Cr
EBIT at 8.6% (+520) bps; PBT (bei) ₹ 1.7 K Cr Margins improve on richer mix, higher realisations and softening commodity prices Q 4 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 ₹(13) Cr Employee cost ₹ (153) Cr D&A and PDE : ₹94Cr Others : ₹ (95) Cr EBIT % 3.4%
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 TOP OF MIND AWARENESS NE T PRO MOT E R SCO RE CO MPO SI T E SAT I SFAC T I O N SCO RE * 57 71 821 792 813 68 68 55 55 55 65 FY20 FY21 FY22 FY23
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 Bright Spots Focus areas • Industry continued its upward trajectory, • Strong demand led by M&HCVs (+52.4% vs • Continued focus on retail, VAHAN +22% vs Q4 FY22, +34% in FY
Slide 32: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility TML Smart City Mobility Solutions Ltd. Digital ▪ Completed all due E-Bus deliveries to • Concession agreements signed • Sustained growth in Fleet Edge adoption DTC and Nagpur city in FY23 • Delhi Transport Corporation (1500) (>390K con
Slide 33: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & PB Balaji (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV)) 33
Slide 34: Tata Passenger Vehicles - Volumes
Tata Passenger Vehicles - Volumes Tata Passenger Vehicles |India business Volumes Wholesales (incl. exports ) Wholesales (incl. exports ) (K units) (K units) VAHAN registration market share(1) YoY 9.6% Exports YoY 45.4% Exports 2.5 541.0 WHOLESALES 132.3 135.6 123.6 0.8 0.5 1.0 372.2 1.8 131.3 134.8
Slide 35: EV’s 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) 47,792 86.5% 83.9% 72.0% 19,105 4,218 FY21 FY22 FY23 FY21 FY22 FY23 Network Charging infra 5,314 Cities Dealerships 250 2,000 143 165 97 75
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 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 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Y-o-Y FY23 FY22 Y-o-Y Global wholesales ( K units) 130.4 142.8 132
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 ₹ Cr. IndAS Q 4 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 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 Key Highlights Bright spots Challenges • Highest ever wholesale: ~3.9 mn (FY23) • Demand for SUVs expected to be higher • Hatch, sedan segment demand Industry • Industry wholesale grew by 27% in FY23 vis- amidst new l
Slide 39: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL.
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 F Y 2 3 | 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 2,725(2) 6,419 639 2,086 2,474 1,642 3,694 2,052 899 743 1,835 3,945 936 1,116 1,859
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 Q 4 F Y 2 3 | 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 ₹ 749 Cr Trade receivables ₹ 15 Cr Inventories ₹ 983 Cr Others ₹ 870 Cr (1) (2) (3) Q4 FY23
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 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 ) • Collection Efficiency for Q4 >100% with March’23 delivering 108% IndAS FY22 FY23 • GNPA redu
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 Long Term Rating Moody’s B1 /Stable S&P BB / Stable CRISIL AA- / Stable ICRA AA- / Positive CARE AA- / Stable 43
Slide 44: Investor day
Investor day Tata Motors India Investor Day Jaguar Land Rover Investor Day Wednesday, June 7, 2023 Monday, June 12, 2023 Mumbai, India 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 • Mome
Slide 46: 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 46
Slide 47: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended March 31, 2023 47
Slide 48: Tata Motors Group Financials
Tata Motors Group Financials Consolidated Quarter ended March 31, 2023 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 71,463 21,240 12,093 1,136 1,05,932 Grant income / incentives 833 107 77 28 1,045 Expenses : Cost of materials consume
Slide 49: Tata Motors Group Financials
Tata Motors Group Financials Consolidated Quarter ended March 31, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 48,023 18,529 10,491 1,396 78,439 Grant income / incentives 491 69 101 (2) 660 Expenses : Cost of materials consumed (
Slide 50: Tata Motors Group Financials
Tata Motors Group Financials Consolidated Year ended March 31, 2023 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 2,22,860 70,816 47,868 4,424 3,45,967 Grant income 2,133 316 431 33 2,913 Expenses : Cost of materials consumed (1,36,032
Slide 51: Tata Motors Group Financials
Tata Motors Group Financials Consolidated Year ended March 31, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 187,697 52,287 31,515 6,955 278,454 Grant income 1,468 184 465 7 2,125 Expenses : Cost of materials consumed (114,340) (3
Slide 52: Tata Motors Group Financials: Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q 4 F Y 2 3 & F Y 2 3 | I F RS , £ m Q4 v Q4 YoY Q3 v Q4 QoQ FY22 v FY23 Q4 FY22 Q3 FY23 Q4 FY23 FY22 FY23 Change Change YoY Change Revenues 4,767 6,041 7,102 18,320 22,809 2,335 1,061 4,489 Material and other cost of sales (2,807) (3,707) (4,327) (11,2
Slide 53: Q4 retails of 103k, up 21% QoQ, 30% YoY
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 TOTAL 50.9 102.9 40.7 84.8 36.7 79.0 23.6 19.8 15.5 14.6 14.5 15.4 12.1 12.9 9.7 Q4 Q4 Q3 Q4 Q4 Q3 Q4 Q4 Q3 Q4 Q4 Q3 Q4 Q4 Q3 Q4 FY22 FY23 FY23 FY22 FY23 FY23 F
Slide 54: Q4 retails were higher in all regions compared to the prior year
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 JLR POWERTRAIN UK N. AMERICA EUROPE CHINA OVERSEAS MIX(RETAILS) 25.3 23.6 22.3 20.6 21.7 19.8 19.3 19.5 14.6 15.0 15.
Slide 55: Strong H2 performance
Strong H2 performance Quarter on quarter improvement in all metrics throughout the year F Y 2 3 | I F RS , £ m REVENUE EBIT 7,102 6.5% 6,041 3.7% 5,260 1.0% 4,406 (4.4)% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 PBT (bei) FREE CASH FLOW 368 815 265 490 (15) (173) (524) (769) Q1
Slide 56: Favourable Q4 YoY operational FX offset partially by hedging
Favourable Q4 YoY operational FX offset partially by hedging Total FX £137m favourable after other FX revaluation, offset partially by unrealised commodity revaluation Q4 FY23 YoY | IFRS, £m 51 (99) (81) 137 113 54 32 38 Operational Exchange Realised FX hedges FX Impact on EBIT FX revaluation of net
Slide 57: 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 15,392 6,789 836 816 1,158 1,891 13,398 Undrawn RCF 1,158 1520 260 5,078 4,083 2,364 3,074 2,375 817 120 247 188 766 CY23 CY24 CY
Slide 58: China JV continues to deliver improved financial performance
China JV continues to deliver improved financial performance Q 4 F Y 2 3 | I F RS , £ m (Presented on 100% basis) Q4 Q3 Q4 Q4 v Q4 YoY Q3 v Q4 QoQ FY22 v FY23 FY22 FY23 FY22 FY23 FY23 Change Change YoY Change Retail volumes ('000 units) 11.0 12.0 12.7 54.0 50.9 1.7 0.7 (3.1) Wholesale volumes ('000