Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q2 FY23 Earnings Presentation
49 slides from Tata Motors Passenger Vehicles's earnings presentation, Nov 9, 2022
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 November 9, 2022 Sc no – 17008 Dear Sir/Madam, Ref: ISIN: INE
Slide 2: Tata Motors Group Results for quarter ended 30th September 2022
Tata Motors Group Results for quarter ended 30 th September 2022
Slide 3: 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 4: Product and other highlights
Product and other highlights Launch of 5 CNG trucks, including India’s first Setting new benchmarks with the launch of the Launch of Tiago EV, receives blockbuster in MHCV, introduction of new age ADAS Yodha 2.0, Intra V20 bi-fuel and Intra V50. opening with more than 10K bookings Range Rover / Rang
Slide 5: Q2: Revenue ₹79.6KCr, EBITDA 9.7%, PBT(bei) ₹(1.8)KCr
Q2: Revenue ₹ 79.6KCr, EBITDA 9.7%, PBT(bei) ₹ (1.8)KCr Volume recovery and richer mix improves margins despite lower than planned volumes at JLR Q 2 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 29.7 % YoY +33.1 % 79.6 71.9 335.8 61.4
Slide 6: EBIT 2.4%; Net Auto Debt ₹59.9 KCr
EBIT 2.4%; Net Auto Debt ₹ 59.9 KCr EBIT improves YoY and QoQ. Q 2 F Y 2 3 | C o n s o l i d a t e d | IndAS Revenue ₹ KCr 4.9 0.6 17.2 (4.5) 79.6 61.4 28.0% 8.0% (7.3)% 1.0% 29.7% increase Q2FY22 Volume & Mix Price Translation Others Q2FY23 Profitability (EBIT) ₹ C r Net Auto Debt ₹ KCr 60.7 59.9 4
Slide 7: Jaguar Land Rover Automotive plc
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL Chief Financial Officer Results for the quarter ended 30 September 2022 6
Slide 8: Q2: Revenue £5.3b, EBITDA 10.3%, PBT(bei) £(173)m
Q2: Revenue £5.3b, EBITDA 10.3%, PBT(bei) £ (173)m Revenue, profitability, cash flows improve despite lower than planned volumes due to chip supply Q 2 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 £m PBT* (bei) (K units) £m YoY + 36 % YoY (4.9)% 5,260 92.7 4,406 88.1 3,871
Slide 9: Q2 FY23 Performance highlights
Q2 FY23 Performance highlights • Retails up QoQ by 12% but down YoY by 5% vs Q2 FY22 (before chip constraints fully impacted sales to customers) Volume & • Wholesales up 5% QoQ, disappointingly lower than planned, due to a shortage in supply of specialised chips from a Revenue specific supplier • Ra
Slide 10: Q2 wholesales of 75k, up 5% QoQ, 18% YoY
Q2 wholesales of 75k, up 5% QoQ, 18% YoY with improved model mix Q2 retails of 88k, up 12% QoQ but down from Q2 FY22 (before impact of chip constraints) Q 2 F Y 2 3 | B r a n d s | U n its in 0 0 0 ’s TOTAL 40.3 92.7 39.2 37.0 88.1 19.2 RETAILS* 16.7 16.9 17.5 17.3 78.8 14.5 13.6 15.2 12.1 Q2 Q1 Q2
Slide 11: Q2 wholesale China & N. America mix significantly improved
Q2 wholesale China & N. America mix significantly improved Q2 retail China & N. America mix also improved QoQ Q 2 F Y 2 3 | R e g i o n s | U n its in 0 0 0 ’s JLR POWERTRAIN UK N. AMERICA EUROPE CHINA OVERSEAS MIX(RETAILS) 25.5 25.5 21.3 19.6 17.7 17.1 17.7 18.5 14.3 16.0 15.0 RETAILS* 14.0 14.5 10
Slide 12: Improved profitability YoY reflects stronger volume, mix and pricing
Improved profitability YoY reflects stronger volume, mix and pricing Partially offset by increased inflation, structural costs and FX impacts Q 2 F Y 2 3 | I F RS , £ m Volumes 120 Pricing 112 Material Operational FX 244 (181) cost SG&A (83) VME Realised FX Mix 302 (189) (1.7)% to 29 Manu- derivativ
Slide 13: Favourable operational FX offset partially by hedging
Favourable operational FX offset partially by hedging Total FX unfavourable £(38)m after other FX revaluation Q 2 F Y 2 3 | I F R S , £m Operational Realised FX FX Impact FX revaluation of net Other FX FX impact on PBT Unrealised FX, Commodity Exchange (1) hedges on EBIT debt & debt hedges Revaluati
Slide 14: Near breakeven free cashflow £(15)m in Q2
Near breakeven free cashflow £(15)m in Q2 Free cashflow excluding working capital £109m Q2 FY23 | IFRS, £m Free cashflow excluding D&A 493 Payables (269) working capital £109m Receivables 80 Inventory (110) (26) Other 175 (526) 834 635 (124) (15) (173) Q1 FY22 to Q2 FY23: £(2,076)m PBT* Non-cash Cas
Slide 15: Cash flow breakeven around 280k wholesales in Q2
Cash flow breakeven around 280k wholesales in Q2 U n its 0 0 0 ’ s 660 540 400 Annualised cash flow 330 320 c. 300 breakeven 280 wholesales FY19 FY20 FY21 FY22 Q1 FY23 Q2 FY23 FY23 Note: FY22 and prior years include working capital 14
Slide 16: Total Q2 investment £526m
Total Q2 investment £526m Engineering capitalisation rate 40%, increasing as future products reach capitalisation triggers Q2 FY23 | IFRS, £m 134 526 237 392 155 Capitalised Expensed Total Capital Total Engineering Engineering Engineering Investment Investment Q2 FY22 119 199 318 166 484 15
Slide 17: Business Update
BUSINESS UPDATE 16
Slide 18: Semiconductor response
Semiconductor response Optimising program planning and improving future supply OPTIMISE PROGRAM PLANNING • Optimise production plans given chip constraints using digital tools • Ensure available chips are allocated to the most profitable models and markets IMPROVE FUTURE SUPPLY • Engaging directly w
Slide 19: New Range Rover & Range Rover Sport production increasing
New Range Rover & Range Rover Sport production increasing Ramp up continuing with further increases planned WEEKLY RR/RRS PRODUCTION 2,400 2,000 1,350 1,350 1,100 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Note: Approximately 46 weeks of production in each fiscal year due to planned shut down
Slide 20: Strong demand continues – record order book of 205k units
Strong demand continues – record order book of 205k units New Range Rover, New Range Rover Sport & Defender account for over 70% of order book Q2 FY23 | U n its in 0 0 0 ’ s CUSTOMER ORDER BOOK WALK QoQ 205 200 168 Other 155 Other (87) 92 125 110 Other Defender Other Defender 72% of total book Other
Slide 21: JLR and retailer inventory remain below normal levels
JLR and retailer inventory remain below normal levels 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 Jul-22 Aug-22 Sep-22 JLR Inventory Retailer Inventory JLR inventory target range*
Slide 22: Significant inflation headwinds offset by Refocus
Significant inflation headwinds offset by Refocus Revenue and cost optimisation actions being taken to mitigate inflation FY23 SOURCES OF INFLATION REFOCUS SAVINGS IN FY23 MARKET PERFORMANCE • £250m value contribution in H1 • Primarily re-pricing and optimisation of available semi-conductor using da
Slide 23: Outlook: Expect improved results as chip supply gradually improves
Outlook: Expect improved results as chip supply gradually improves F Y 2 3 ACTUALS F Y 2 3 OUTLOOK H1 H2 FY23 WHOLESALES* 147k >160k c. 310k REVENUE £9.7b > £10b c. £20b EBIT MARGIN (1.5)% Positive Positive INVESTMENT c.£1.0b c.£1.2b c. £2.3b FREE CASH FLOW £(784)m c £750m Breakeven KEY PRIORITIES C
Slide 24: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & PB Balaji (Includes Tata CV India, Tata Cummins JO results and Tata CV International)
Slide 25: Registration (VAHAN) market shares at 43.2%
Registration (VAHAN) market shares at 43.2% Shifting to “Demand Pull” business model for sustainable market share gains; focus on profitable growth Tata Commercial Vehicles | Domestic market share Commercial Vehicles 44.7% 43.9% 43.2% Vahan Category TML Product Line constituents HGV+HMV ICV (13-16 T
Slide 26: Tata Commercial Vehicles - Volumes
Tata Commercial Vehicles - Volumes Strong YoY growth driven by increase in MHCV, passenger carrier demand, pick up in infra projects; higher retails Tata Commercial Vehicles |India Business Volumes Wholesales (incl. exports ) (K units) Retails (domestic) Exports YoY 14.9% (K units) YoY 22.8% 101.1 1
Slide 27: Q2: Revenue ₹16.4KCr, EBITDA 5.0%, PBT(bei) ₹0.3 KCr
Q2: Revenue ₹ 16.4KCr, EBITDA 5.0%, PBT(bei) ₹ 0.3 KCr Revenue growth of 36%; Q2 margins impacted by residual commodity inflation. Q 2 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 + 15.0 % ₹KCr YoY + 35.5 % (K units) ₹KCr 103.7 103.1 0.3 0.3
Slide 28: EBIT at 2.3% (+260) bps; PBT (bei) ₹0.3 K Cr
EBIT at 2.3% (+260) bps; PBT (bei) ₹ 0.3 K Cr Margins improve on higher volumes and realisations offset by residual commodity inflation; Reductions secured from Q3 Q 2 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 ₹(29) Cr Employee cost ₹ (118) Cr D&A and PDE :
Slide 29: Tata Commercial Vehicles – Overall update
Tata Commercial Vehicles – Overall update Industry continued upward trajectory, cautiously optimistic despite inflationary head winds Key Highlights Bright Spots Focus areas • Industry continued its upward trajectory, grew • Strong industry growth led by M&HCVs (+61% • Focus on retail acceleration a
Slide 30: Tata Commercial Vehicles – New business update
Tata Commercial Vehicles – New business update Electric Mobility TML Smart City Mobility Solutions Ltd. Digital Successfully completed ACE EV in-market • Completed delivery of 100 E-buses to Delhi • Consistently grew Fleet edge, connected truck trials with leading e-Commerce customers Transport Co
Slide 31: 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 32: Tata Passenger Vehicles – Sustained volume growth
Tata Passenger Vehicles – Sustained volume growth Tata Passenger Vehicles |India business Volumes Wholesales (incl. exports ) (K units) Retails (domestic) Exports (K units) YoY 69.0% YoY 57.0% 142.8 133.7 130.4 0.5 124.8 0.2 84.4 85.2 0.4 130.2 142.3 84.0 Q2 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q1 FY23 Q2 F
Slide 33: Surpassed FY22 sales in H1 FY23; expanding sales and charging network
Surpassed FY22 sales in H1 FY23 ;Expanding sales and charging network to accelerate sales growth Volume & Market Share Network Charging infra 25,0 00 88% 100 % 3,466 87% 20,808 90% 250 19,105 71% 20,0 00 80% 70% 15,0 00 60% 165 2,000 50% 143 97 10,0 00 40% 30% 75 5,00 0 4,218 20% 51 450 10% - 0% FY2
Slide 34: Q2: Revenue ₹12.5KCr, EBITDA 5.4%, PBT(bei) positive
Q2: Revenue ₹ 12.5KCr, EBITDA 5.4%, PBT(bei) positive Revenue growth 71%; Q2 margins impacted by residual commodity inflation and fx. Q 2 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 + 69.0 % ₹KCr YoY + 71.0 % (K units) ₹KCr 12.5 11.6 0.17 142
Slide 35: EBIT at 0.4% (+200) bps; PBT (bei) positive
EBIT at 0.4% (+200) bps; PBT (bei) positive Margins improve on better volumes, mix & realisations offset by residual commodity inflation, fx Q 2 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 : ₹(15) Cr Employee cost : ₹(140) Cr D&A and PDE : ₹(39)Cr Other fixed ex
Slide 36: Business update
Business update Significant growth posted in Q2; PV and EV business growth to continue. Tata Passenger and Electric Vehicles Key Highlights Bright spots Challenges • Industry wholesale breached quarterly • Industry to sustain strong retails in Q3 • Migration to 2023 Model year and BSVI Industry 1mn
Slide 37: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 36
Slide 38: Q2 FY23 Free Cash Flows ~₹0.7 KCr
Q2 FY23 Free Cash Flows ~₹ 0.7 KCr Strong cash profits and favourable working capital driving positive cash flows Q2FY23 | Tata Motors Domestic Business |IndAS, ₹ Cr* Payables, acceptances ₹ 148 Cr Trade receivables ₹ 163 Cr Inventories ₹ 1 Cr Others ₹ 106 Cr Q2 FY23 H1 FY23 (149) 3,175 (222) 2,804
Slide 39: Investment Spending in Q2FY23 ₹1.2 KCr, H1FY23 ₹2.3 KCr
Investment Spending in Q2FY23 ₹ 1.2 KCr, H1FY23 ₹ 2.3 KCr FY23 capex to be ~ ₹ 6000 Cr; FCF to remain positive Q2FY23 | Tata Motors Domestic Business* |IndAS, ₹ Cr Q2FY23 | Domestic CV Business |IndAS, ₹ Cr H1 FY23 382 378 760 299 1,059 Q2FY23 |Domestic PV+EV Business |IndAS, ₹ Cr H1 FY23 420 348 76
Slide 40: Managed AUM ₹46.3K Cr & PBT ₹(77 Cr)
Managed AUM ₹ 46.3K Cr & PBT ₹ (77 Cr) Normal book is healthy; Focus on sourcing and growing quality book with targeted collections; Pandemic affected restructured book being monitored closely H 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 ₹ 9,750 Cr for H1F
Slide 41: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth whilst deleveraging the business Outlook (FY23) • Demand remains strong for now; will remain a key monitorable in the wake of global uncertainties • Chip supply to improve further; volumes to ramp up steadily • Cooli
Slide 42: 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 43: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended 30 th September 2022 42
Slide 44: Q2 FY23: Tata Motors Group Financials
Q2 FY23: Tata Motors Group Financials Consolidated Quarter ended September 30, 2022 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 49,477 16,420 12,547 1,166 79,611 Grant income / incentives 471 72 101 2 646 Expenses : Cost of materials
Slide 45: Q2 FY22: Tata Motors Group Financials
Q2 FY22: Tata Motors Group Financials Consolidated Quarter ended September 30, 2021 Rs Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 39,964 12,119 7,337 1,959 61,379 Grant income / incentives 446 47 122 3 618 Expenses : Cost of materials
Slide 46: Tata Motors Group Financials: Jaguar Land Rover
Tata Motors Group Financials Jaguar Land Rover Q 2 F Y 2 3 & H 1 F Y 2 3 | I F RS , £ m H1 H1 Q2 v Q2 YoY Q1 v Q2 QoQ FY22 v FY23 YoY Q2 FY22 Q1 FY23 Q2 FY23 FY22 FY23 Change Change Change Revenues 3,871 4,406 5,260 8,837 9,666 1,389 854 829 Material and other cost of sales (2,500) (2,762) (3,212) (
Slide 47: Registration (VAHAN) market shares at 43.2%
Registration (VAHAN) market shares at 43.2% Shifting to “Demand Pull” business model for sustainable market share gains; focus on profitable growth Tata Commercial Vehicles | Domestic market share Commercial Vehicles 44.7% 43.9% 43.2% FY22 Q1 FY23 H1 FY23 MHCV ILCV SCV Buses & Vans 55.0% 53.3% 53.1%
Slide 48: 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 18,610 8,216 854 768 1,754 2,306 Undrawn RCF 16,002 1,500 5,142 5,330 491 882 228 1,754 3,086 3,502 2,973 835 620 120 241 1,900 C
Slide 49: China JV continues to deliver improved financial performance
China JV continues to deliver improved financial performance Q 2 F Y 2 3 | I F RS , £ m (Presented on 100% basis) Q2 FY22 v Q1 FY23 v Q1 Q2 Q2 FY23 Q2 FY23 FY20 FY21 FY22 FY23 FY23 YoY QoQ Change Change Retail volumes ('000 units) 50.0 64.3 54.0 11.0 15.2 0.7 4.2 Wholesale volumes ('000 units) 49.5