Tata Motors Limited · NSE:TMCV
Tata Motors — Q1 FY2025 Earnings Presentation
47 slides from Tata Motors's earnings presentation, Aug 1, 2024
Slide 1: Submission letter to stock exchanges
BSE Limited National Stock Exchange of India Ltd. First Floor, New Trading Ring Exchange Plaza, C-1, Block G, Rotunda Building, P J Towers, Bandra Kurla Complex, Dalal Street, Fort, Mumbai 400 001 Bandra(E), Mumbai 400 051 August 1, 2024 Sc no – 18375 Dear Sirs/Madam, Sub: Submission of Investor pre
Slide 2: Tata Motors Group Results for quarter ended June 30, 2024
Tata Motors Group Results for quarter ended June 30, 2024
Slide 3: Safe harbour statement
Safe harbour statement Other Details • 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 Tata Curvv set to be launched Launched Fleet Verse, a digital marketplace Launched ACE EV 1000 with higher Punch.ev and Nexon.ev receives 5- across entire range of commercial vehicles payload and extended range star safety ratings from Bharat-NCAP Creating complementary
Slide 5: Q1: Revenue ₹108.0K Cr, EBITDA 14.4%, PBT(bei) ₹8.8K Cr
Q1: Revenue ₹108.0K Cr, EBITDA 14.4%, PBT(bei) ₹8.8K Cr Volumes, Mix, Material costs and favourable commodities drive up PBT performance Q 1 F Y 2 5 | C o n s o l i d a t e d | IndAS, ₹ K C r Global Wholesales Revenue PBT (bei) (K units) ₹K Cr ₹K Cr YoY +2.5 % YoY +5.7 % 377.1 120.0 322.2 330.3 108.
Slide 6: EBIT 8.4%; Net Auto Debt at ₹18.6K Cr
EBIT 8.4%; Net Auto Debt at ₹18.6K Cr Focus on deleveraging continues, Q1 net debt slightly higher due to seasonality Q 1 F Y 2 5 | C o n s o l i d a t e d | IndAS Revenue ₹K Cr PBT (bei) ₹ C r 1.6 0.1 5.0 (0.9) 8,828 102.2 108.0 5,541 4.9% (0.9)% 1.6% 0.1% 5.7% increase Q1 FY24 Volume & Mix Price T
Slide 7: Proposed demerger – executive summary
Proposed demerger – executive summary • CV Business to be demerged from TML (“Existing List Co”) into a separate listed company (“New CV list Co”) Composite Scheme • Tata Motors Passenger Vehicles Limited (TMPV) to be merged with TML (“Existing List Co”) Design • All CV related investments to move t
Slide 8: Resultant Listed Companies: TML (CV List Co) and TMPVL (PV List Co)
Resultant Listed Companies: TML (CV List Co) and TMPVL (PV List Co) CV Business to be demerged from TML (“Existing List Co”) into a Tata Motors Passenger Vehicles Limited (TMPV) to be merged separate listed company (“New CV list Co”) with TML (“Existing List Co”) Tata Group Others Tata Group Others
Slide 9: Update on other Corporate actions
Update on other Corporate actions Merger of Tata Motors Finance with Tata Capital Cancellation of DVR’s and issuance of ORD shares • Board of TML, TCL and TMFL approved a merger of TMFL • NCLT hearing has been completed and NCLT Order is with TCL through an NCLT scheme of arrangement. reserved for f
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 June 30, 2024 9
Slide 11: Q1 Revenue £7.3b, Best Q1 Revenue on record
Q1 Revenue £7.3b, Best Q1 Revenue on record Strong financial performance continues; 8.9% EBIT; £693m PBT (bei) Q 1 F Y 2 5 | J a g u a r L a n d R o v e r | I F RS , £ m Wholesales PBT (bei)(1) Revenue (K units) £m £m YoY + 5.4 % YoY +4.8% 7,860 661 693 110.2 6,903 7,273 93.3 97.8 435 Q1 FY24 Q4 FY2
Slide 12: Q1 FY25 Performance highlights
Q1 FY25 Performance highlights VOLUME & REVENUE Q1 wholesales of 98k, up 5% YoY Q1 retails of 111k, up 9% YoY Revenue for the quarter was £7.3b, up 5% YoY, the best Q1 revenue on record PROFITABILITY EBIT margin of 8.9% for the quarter reflects higher wholesales and material cost improvement offset
Slide 13: Wholesales: Q1 Wholesales 98k, up 5% YoY and Retails 111k, up 9% YoY
Q1 Wholesales 98k, up 5% YoY and Retails 111k, up 9% YoY Mix of Range Rover, Range Rover Sport and Defender increased to 68% of total wholesales FY25 | Wholesales | Brands | Units in 000’s TOTAL 110.2 58.3 57.4 97.8 93.3 WHOLESALES 45.7 28.3 28.7 24.5 13.5 9.0 9.7 7.6 10.3 8.2 Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q
Slide 14: Wholesales and retails by region, 80% electrified
Wholesales up YoY in North America, UK & China Retail sales up YoY in UK, North America and Europe FY25 | Regions | Units in 000’s NORTH OVERSEAS UK EUROPE CHINA JLR POWERTRAIN AMERICA MIX(RETAILS) 30.4 31.0 27.8 * 23.2 21% 20% WHOLESALES 22.4 22.0 26% 20.4 20.1 18.9 17.0 16.5 15.4 -----------------
Slide 15: Q1 FY25 PBT(bei) £693m up £258m YoY
Q1 FY25 PBT(bei) £693m up £258m YoY EBIT increased to 8.9% due to MLA growth and continued easing of material cost pressures, partially offset by increasing VME Pricing 90 FMI & Selling (36) VME (0.8)% (195) to (3.2)% Admin & other (37) 193 (105) 84 (73) 159 Material Operational FX (57) 113 costs Vo
Slide 16: £230m of free cash flow in the quarter
£230m of free cash flow in the quarter After investment spend of £951m D&A 510 (65) 670 Payables (54) (951) Receivables 92 1,298 Inventory (193) Other 38 693 (117) 230 Q1 FY25 PBT (bei) Non- cash Cash Cash profit Investment Working capital Free and other Tax After tax spending & accruals Cash flow Q
Slide 17: Q1 FY25 investment of £951m; full year target remains £3.5b
Q1 FY25 investment of £951m; full year target remains £3.5b Engineering capitalization rate of 66%, consistent with recent quarters 273 229 951 678 449 Capitalized Expensed Total Capital Total Q1 FY25 Engineering Engineering Engineering Investment Investment Q1 FY24 320 203 523 174 697 16
Slide 18: Business Update
BUSINESS UPDATE 17
Slide 19: JLR & Chery announce new model of collaboration in China
JLR & Chery announce new value creating model of collaboration for next era of electrification in China Creating complementary growth through licensing of Freelander to JLR’s JV in China Electric Mainstream Market • A new value creating model of collaboration to strengthen CJLR’s product offer for t
Slide 20: Future Jaguar
Future Jaguar Creating growth through desirability PHASE 1 – APRIL 2024 PHASE 2/3 – SEPT 2024 TO JUNE 2025 PHASE 4/5 ONBOARDING SEEDING THE BRAND & DESIGN VISION LAUNCH Focused on Creating Exceptional Experiences & Growing Client Intimacy Owned metropolitan spaces Client led test drive & handover Un
Slide 21: Looking ahead
Looking ahead Remain committed to sustainable, cash generative growth Outlook • Global demand is likely to remain muted. Commodities are likely to remain range bound. • We are likely to witness constrained production in Q2 and Q3 reflecting the annual summer plant shutdown and floods at a key alumin
Slide 22: Summary
Summary Remain committed to sustainable, cash generative growth WE ARE DELIVERING UNLOCKING GROWING FOCUS ON ROCE THE BEST IS STILL TO OUR REIMAGINE OPPORTUNITIES FOR RESPONSIBLY AND CAPITAL COME PROMISES GROWTH ALLOCATION 21
Slide 23: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & GV Ramanan (Includes Tata CV India, Tata Cummins JO results and Tata CV International) 22
Slide 24: Registration (Vahan) market share
Registration (Vahan) market share Consistent market share growth in medium and heavy segments Tata Commercial Vehicles | Domestic market share* Commercial Vehicles 39.1% 39.0% FY24 Q1 FY25 HGV+HMV MGV LGV Passenger 48.8% 49.3% 39.2% 37.5% 37.2% 34.3% 35.0% 33.1% FY24 Q1 FY 25 FY24 Q1 FY25 FY24 Q1 FY
Slide 25: Q1: Revenue ₹17.8K Cr, EBITDA 11.6%, PBT(bei) ₹1.5K Cr
Q1: Revenue ₹17.8K Cr, EBITDA 11.6%, PBT(bei) ₹1.5K Cr Margins improve y-o-y on better realizations and material cost savings Q 1 F Y 2 5 | 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) (K units) ₹K Cr YoY +5.7 % YoY + 5.1 % ₹K Cr 21.6 2.0 111.3 17.0 17.8
Slide 26: EBIT at 8.9% (+240) bps; PBT (bei) ₹1.5K Cr
EBIT at 8.9% (+240) bps; PBT (bei) ₹1.5K Cr Margins improve on favourable volumes, pricing and lower contribution costs Q 1 F Y 2 5 | 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 : ₹13 Cr Employee cost : ₹ (82) Cr Others: ₹ (41) Cr EBIT % 6.5% 1.0% 1.5% 1.2% (1.1
Slide 27: Tata Commercial Vehicles – Overall update
Tata Commercial Vehicles – Overall update Key Highlights Bright Spots Focus areas • Domestic Volumes: Wholesale volumes grew • Contrary to expectations demand remained • Trucks & Buses: Introduction of new variants ~7% YoY with M&HCV and CV Passenger Carriers robust with industry volumes growing 7%
Slide 28: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility TML Smart City Mobility Solutions Ltd Digital E Buses: • TML e-bus fleet cumulatively crossed 160 • Fleet Edge has now 690K+ vehicles on platform million Kms with >95% uptime till Q1 FY25. Clocked revenue of ₹15 Cr in Q1 FY25 (FY24 • 1
Slide 29: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & Dhiman Gupta (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV)) 28
Slide 30: Vahan market share held at 13.7%; Alternative powertrains continue to grow
Vahan market share held at 13.7%; Alternative powertrains continue to grow Penetration of CNGs & EVs at 34%; Portfolio emissions well below current CAFE norms Tata Passenger Vehicles |India business VAHAN Domestic Market share(1) Powertrain Mix Tata Motors PV CAFE Compliance Petrol Diesel EV CNG (CO
Slide 31: EV Fleet sales impacted from expiry of FAME II
EV Fleet sales impacted from expiry of FAME II, reflected in lower volumes Strong enquiry pipeline, new launches along with focused market interventions to drive growth in coming quarters Tata Passenger Electric Vehicles EV Volumes VAHAN registration market share(1) Charging Network Wholesales (incl
Slide 32: Q1: Revenue ₹11.8K Cr, EBITDA 5.8%, PBT(bei) positive
Q1: Revenue ₹11.8K Cr, EBITDA 5.8%, PBT(bei) positive Material cost reductions drive improvement in EBITDA margin y-o-y despite drop in volumes Q 1 F Y 2 5 | 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 (1.1) % ₹K Cr YoY (7.7) % (K units) ₹K Cr 155.6 14
Slide 33: Q1 EBIT at 0.3% (-70 bps); PBT (bei) ₹0.2K Cr
Q1 EBIT at 0.3% (-70 bps); PBT (bei) ₹0.2K Cr Margins affected by adverse operating leverage; expect to witness sequential recovery ₹ Cr. IndAS Q 1 F Y 2 5 | T a t a P a s s e n g e r V e h i c l e s | IndAS, ₹ Cr FME : ₹10Cr PV (ICE) and EV financials split Employee cost : ₹(82) Cr D&A and PDE : ₹(
Slide 34: Business update – Q1 FY25
Business update – Q1 FY25 Sustained wholesale and Vahan volumes with focus on optimal channel inventory amidst tough environment Key Highlights Bright spots Challenges & Actions • PV industry faced stress on registration in May & June with 1% and 7% degrowth YoY, after • Steady industry enquiries in
Slide 35: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL.
Slide 36: Q1 FY25 Free Cash Flows ₹(1.3)K Cr
Q1 FY25 Free Cash Flows ₹(1.3)K Cr Working capital is adverse during the quarter on account of seasonality Q 1 F Y 2 5 | 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 | I n d A S , ₹ C r (1) Payables, acceptances ₹ 282 Cr Trade receivables ₹ 468 Cr Inventories ₹ 1,257 Cr Others ₹ 564 Cr (2) (1
Slide 37: Investment Spending in Q1 FY25 ₹2.2K Cr
Investment Spending in Q1 FY25 ₹2.2K Cr Steady investment spends to continue towards new technologies, powertrains Q 1 F Y 2 5 | 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 1,009 2,194 313 775 495 1,185 696 690 225 462 270 1,419 237 723 453 Capitalised Expens
Slide 38: TMF: Focus on growing the AUM whilst holding portfolio quality
TMF: Focus on growing the AUM whilst holding portfolio quality Merger of NBFC with Tata Capital is on track Q 1 F Y 2 5 | 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 • Disbursals at ₹4,517 Cr for Q1FY25, up 33% YoY. Focus on sourcing quality IndAS Q1 FY24 Q1 FY25 & pricing discipl
Slide 39: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth and generating strong returns Outlook • Anticipate gradual improvement in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favorable macros and fest
Slide 40: 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
Slide 41: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended June 30, 2024 40
Slide 42: Tata Motors Group Financials – Q1 FY25
Tata Motors Group Financials Consolidated Quarter ended June 30, 2024 ₹ Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 76,899 17,849 11,847 1,452 108,048 Grant income / incentives 648 49 45 - 742 Expenses : Cost of materials consumed (44,4
Slide 43: Tata Motors Group Financials – Q1 FY24
Tata Motors Group Financials Consolidated Quarter ended June 30, 2023 ₹ Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 71,396 16,991 12,839 1,010 102,236 Grant income / incentives 501 68 103 11 683 Expenses : Cost of materials consumed (41
Slide 44: Tata Motors Group Financials: Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q 1 F Y 2 5 | I F RS , £ m Q1 v Q1 YoY Q1 v Q4 QoQ Q1 FY24 Q4 FY24 Q1 FY25 Change Change Revenues 6,903 7,860 7,273 370 (587) Material and other cost of sales (4,026) (4,535) (4,228) (202) 307 Employee costs (716) (826) (848) (132) (22) Other (expense)/
Slide 45: China JV financial performance
China JV financial performance Q 1 F Y 2 5 | I F RS , £ m (Presented on 100% basis) Q1 Q4 Q1 Q1 v Q1 YoY Q1 v Q4 QoQ FY24 FY24 FY25 Change Change Retail volumes ('000 units) 12.9 10.8 10.5 (2.4) (0.3) Wholesale volumes ('000 units) 13.0 10.4 11.8 (1.2) 0.4 Revenue 430 332 361 (69) 29 Profit before t
Slide 46: Q1 YoY operational FX unfavourable offset by hedging
Q1 YoY operational FX unfavourable offset by hedging Total Q1 FX and commodity impact £193m favourable YoY, primarily reflecting favourable unrealised commodity hedges Q1 FY25 YoY | IFRS, £m Operational Exchange Realised FX hedges FX Impact on EBIT FX revaluation of net Other FX revaluation FX impac
Slide 47: Debt profile
Debt profile Strong liquidity; debt maturities well spread out Jaguar Land Rover Tata Domestic Business* IFRS, £m Debt maturity profile IndAS Total Debt maturity profile Total Total liquidity ₹ Cr 5,337 4,818 9,827 1,520 775 744 Undrawn RCF 985 1,805 1,520 123 3817 8,860 3,089 7,247 104 755 321 1,80