Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q2 FY25 Earnings Presentation
49 slides from Tata Motors Passenger Vehicles's earnings presentation, Nov 8, 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 November 8, 2024 Sc no – 18513 Dear Sirs/Madam, Sub: Submission of Investor p
Slide 2: Tata Motors Group Results for quarter ended September 30, 2024
Tata Motors Group Results for quarter ended September 30, 2024
Slide 3: Tribute to Ratan N Tata
Sir, thank you for continuing to inspire us… RATAN N TATA 28.12.1937 - 09.10.2024 2
Slide 4: 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 5: Product and other highlights
Product and other highlights Showcased safe, smart and sustainable Launch of Nexon iCNG and Nexon.ev Curvv and Curvv.ev launched, price Groundbreaking ceremony of new mass mobility solutions at Prawaas 4.0 45 kWh parity achieved with ICE vehicle manufacturing facility in Tamil Nadu New Halo products
Slide 6: Q2: Revenue ₹101.5K Cr, EBITDA 11.4%, PBT(bei) ₹5.8K Cr
Q2: Revenue ₹101.5K Cr, EBITDA 11.4%, PBT(bei) ₹5.8K Cr Steady first half under challenging conditions; sequential recovery expected in H2 Q 2 F Y 2 5 | C o n s o l i d a t e d | IndAS,₹ K C r Revenue EBIT PBT (bei) FCF(Auto) % ₹K Cr YoY (0.4)K Cr ₹K Cr YoY (6.8)K Cr ₹K Cr YoY (3.5) % YoY (190) bps
Slide 7: EBIT 5.6%; Net Auto Debt at ₹22.0K Cr
EBIT 5.6%; Net Auto Debt at ₹22.0K Cr Seasonality impacts Net Debt. To reverse in H2. Q 2 F Y 2 5 | C o n s o l i d a t e d | IndAS Revenue ₹K Cr PBT (bei) ₹ C r (6.6) 3.5 0.4 (0.9) 6,159 5,768 105.1 (6.2)% (0.9)% 3.3% 0.3% 101.5 3.5% decrease Q2 FY24 Volume & Mix Price Translation Others Q2 FY25 EB
Slide 8: 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 September 30, 2024 7
Slide 9: Q2 performance impacted by temporary supply constraints
Q2 performance impacted by temporary supply constraints Full Year guidance unchanged at c. £30b revenue, EBIT margin ≥8.5% and positive net cash Q2 FY25 | Jaguar Land Rover | IFRS, £m Revenue EBIT PBT (bei)1 FCF YoY (5.6) % YoY (220) bps YoY (0.04) b YoY (0.6) b £m % ₹£m ₹£m 6,857 7,273 6,475 8.9 7.
Slide 10: Q2 FY25 performance highlights
Q2 FY25 performance highlights VOLUME & REVENUE Q2 wholesales of 87k, down 10% YoY and H1 wholesales of 185k, down 3% YoY due to: • The impact of severe flooding at a key high-grade aluminium supplier • Temporary hold placed on 6,029 vehicles to allow additional quality control checks Q2 retails of
Slide 11: Q2 Wholesales of 87K, down 10% YoY
Q2 Wholesales of 87K, down 10% YoY Strong recovery in production and wholesales expected in H2 Q 2 F Y 2 5 | W h o l e s a l e s | B r a n d s | Units in 000’s TOTAL 57.4 96.8 97.8 87.3 44.3 44.8 30.5 28.8 Q2 24.5 13.5 8.5 7.6 7.8 8.2 6.0 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY
Slide 12: YTD Wholesales up in UK, North America & China
YTD Wholesales up in UK, North America & China Temporary hold on vehicles at the end of September impacted UK and Europe Q 2 F Y 2 5 | W h o l e s a l e s | R e g i o n s | Units in 000’s NORTH OVERSEAS UK EUROPE CHINA JLR POWERTRAIN AMERICA MIX(RETAILS) 31.0 26.3 25.1 23.2 20% 21% 21.1 28% 19.7 18.
Slide 13: Q2 FY25 PBT £398m, down £44m YoY
Q2 FY25 PBT £398m, down £44m YoY Lower wholesales and increased VME/FMI, partially offset by prioritisation of Range Rover production and reduced material costs Q2 FY25 | IFRS, £m Operational FX (29) Realised FX derivatives 15 FX revaluation 98 Unrealised commodity derivatives (3) D&A 91 (162) Fixed
Slide 14: £(26)m of free cash flow in H1
£(26)m of free cash flow in H1 Investment spend of £1.9 billion funded fully from cash profits after tax H 1 F Y 2 5 | IFRS, £m D&A 944 (158) 1,199 (1,898) 2,140 Payables (293) Receivables 110 Inventory (245) 1,099 Other 160 (268) (26) PBT (bei) Non-cash and other Cash tax Cash profit after tax Inve
Slide 15: YTD investment of £1,898m; full year target £3.7b
YTD investment of £1,898m; full year target £3.7b Increased spend as we near the launch of new products H 1 F Y 2 5 | IFRS, £m 549 465 1,898 1,349 884 Capitalised Expensed Total Capital Total Engineering Engineering Engineering Investment Investment H1 FY24 688 412 1,100 372 1,472 14
Slide 16: Business Update
BUSINESS UPDATE 15
Slide 17: China market update
China market update MACRO AUTO MARKET JLR IN CHINA DELIVERS ENVIRONMENT CHALLENGES STABLE PERFORMANCE Premium Market JLR Import - Import business delivered better Retailer Profits Decline than the market in the first half -12% -4% despite macro headwinds Profitable % of 1,886k 24% C1 CY24 27k 26k -
Slide 18: Reimagine strategy progressing
Reimagine strategy progressing £500 million investment in creating EV factory of the future in Halewood plant, Merseyside as part of £18 billion investment JLR has radically transformed its plant in Halewood, Merseyside in preparation for electric vehicle production The transformational works will e
Slide 19: Looking ahead
Looking ahead Holding full year guidance for revenue, EBIT margin and net cash positive Q2 FY25 H1 FY25 ACTUAL ACTUAL OUTLOOK REVENUE £6.5b £13.7b c.£30b EBIT MARGIN 5.1% 7.1% ≥8.5% INVESTMENT £0.9b £1.9b £3.7b FREE CASH FLOW £(0.3)b £(0.0)b c. £1.3b Net cash NET CASH POSITIVE £(1.2)b £(1.2)b positi
Slide 20: Tata Commercial Vehicles
Tata Commercial Vehicles Girish Wagh & GV Ramanan (Includes Tata CV India, Tata Cummins JO results and Tata CV International) 19
Slide 21: Registration (Vahan) market share
Registration (Vahan) market share CV market share steady at 38.1% for H1 Tata Commercial Vehicles | Domestic market share* Commercial Vehicles 39.1% 39.0% 38.1% 37.2% FY24 Q1 FY25 Q2 FY25 H1 FY 25 HGV+HMV MGV LGV Passenger 48.8% 49.3% 47.6% 48.5% 39.2% 38.6% 37.5% 38.0% 37.2% 37.3% 37.2% 34.3% 35.0%
Slide 22: Q2: Revenue ₹17.3K Cr, EBITDA 10.8%, PBT(bei) ₹1.3K Cr
Q2: Revenue ₹17.3K Cr, EBITDA 10.8%, PBT(bei) ₹1.3K Cr Double digit EBITDA sustained despite revenue decline; H1 PBT(bei) strong at ₹2.8K Cr Q 2 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 Revenue PBT (bei) EBITDA EBIT ₹K Cr ₹K Cr YoY (13.9) % % YoY + 40 bps % YoY (10) bps
Slide 23: EBIT at 7.8%; PBT (bei) ₹1.3K Cr
EBIT at 7.8%(-10) bps; PBT (bei) ₹1.3K Cr Margins sustained on favourable pricing & commodity benefits despite adverse volumes Q 2 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 : ₹6 Cr Employee cost : ₹ (52) Cr Others: ₹ (60) Cr EBIT % 7.9% (2.3)% 1.3% 1
Slide 24: Commercial Vehicles – Industry Insights
Commercial Vehicles – Industry Insights • CV industry saw an 11% YoY decline in Q2 FY25, impacted by slowdown in infra, reduction in mining activity and heavy rains. • HCV, ILMCV and SCVPU declined by 24%, 13% and 10%, however Passenger carriers grew by 5% • Average Kilometers run declined in HCV, I
Slide 25: Tata Commercial Vehicles – Highlights
Tata Commercial Vehicles – Highlights Vehicle Business Electric Mobility TML Smart City Mobility Solutions Ltd • Overall volumes declined 19% YoY in Q2 FY25 • E Buses: • TML e-bus fleet cumulatively crossed 200+ and 8% YoY in H1 FY25, however, HCV, ILMCV million Kms with >95% uptime and Passenger Ca
Slide 26: Digital Business: built scale and established revenue model
Digital Business: built scale and successfully established revenue model Fleetedge - Net Revenue,H1 • Fleetedge has 710K+ active vehicles on platform with healthy share of active and engaged users. Now it has 78% monthly active users and 52% weekly active users on platform. • ML based Fuel Efficienc
Slide 27: Tata Commercial Vehicles – Focus Areas
Tata Commercial Vehicles – Focus Areas • Increased infrastructure spending and the arrival of the festive season boosting consumption expected to improve CV demand. • Trucks & Buses: Introduce new variants, drive value selling agenda, while improving customer value propositions • SCV: a) Launch of i
Slide 28: Tata Passenger Vehicles
Tata Passenger Vehicles Shailesh Chandra & Dhiman Gupta (Includes Tata PV, EV India, FIAPL JO results and International business(PV+EV)) 27
Slide 29: Vahan market share held at 13.3%; alternative powertrains grow
Vahan market share held at 13.3%; Alternative powertrains continue to grow Penetration of CNGs & EVs at 33%; 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 30: Overall PV slowdown impacts EV growth; market shares hold up
Overall PV slowdown and incentive withdrawal impacts EV growth; market shares hold up despite stiff competition Enquiry pipeline strong, charging infrastructure continues to scale Tata Passenger Electric Vehicles EV Volumes VAHAN registration market share(1) Charging Network Wholesales (incl. export
Slide 31: Q2: Revenue ₹11.7K Cr, EBITDA 6.2%, PBT(bei) positive
Q2: Revenue ₹11.7K Cr, EBITDA 6.2%, PBT(bei) positive Steady EBITDA margins despite muted industry demand, mix continues to improve Q 2 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 Revenue EBITDA EBIT ₹K Cr % PBT (bei) YoY (3.9) % YoY (30) bps % YoY (170) bps YoY (0.1)K Cr ₹K
Slide 32: Q2 EBIT at 0.1%; PBT (bei) ₹0.2K Cr
Q2 EBIT at 0.1%(-170 bps); PBT (bei) ₹0.2K Cr Material cost savings passed to stimulate demand; adverse operating leverage expected to reverse in H2 Q 2 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 : ₹16Cr PV (ICE) and EV financials split Employee cost : ₹(66) Cr D&A and PDE
Slide 33: Business update – Q2 FY25
Business update – Q2 FY25 Slow market & high competitive intensity creating short-term headwinds Industry Highlights Tata Motors Highlights • Industry registrations and wholesale de-grew by 5% and 1.8% • In Q2, Tata Motors registrations and wholesale de-grew by YoY respectively in Q2; with 26-month
Slide 34: Business update – Q2 FY25: new launches & festive period
Business update – Q2 FY25 New launches & festive period to support revival Industry Outlook & TML Actions • Q3 has started off with a resurgence in industry demand; retail is expected to be strong driven by festivities and year-end demand. • We recorded highest ever monthly registrations of ~68.5k i
Slide 35: Tata Motors (CV+PV)
Tata Motors (CV+PV) *TML, TMPVL, TPEML and Joint operations TCL and FIAPL. 34
Slide 36: H1 FY25 Free Cash Flows ₹(1.1)K Cr on account of seasonality
H1 FY25 Free Cash Flows ₹(1.1)K Cr on account of seasonality Investments of ₹3K Cr funded from cash profits after tax H 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 ₹ 111 Cr Trade receivables ₹ 1,002 Cr Inventories ₹ 1,359 Cr Others ₹
Slide 37: S&P upgrades to Investment grade
S&P upgrades to Investment grade Credit ratings continue to improve on account of strong business profile and deleveraging Rating Agencies FY24 rating Current rating S&P BB+ / Positive BBB/ Stable Moody’s Ba3 / Positive Ba1 / Positive CRISIL AA / Positive AA+ / Stable ICRA AA / Stable AA +/ Stable C
Slide 38: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth and generating strong returns Outlook • Remain cautious on near term domestic demand; Infrastructure investment and festive season should help. • JLR wholesales to improve sharply as supply challenges ease; However,
Slide 39: 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 38
Slide 40: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended September 30, 2024 39
Slide 41: Tata Motors Group Financials Q2 FY25
Tata Motors Group Financials Consolidated Quarter ended September 30, 2024 ₹ Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 71,100 17,288 11,700 1,362 1,01,450 Grant income / incentives 697 40 85 0 822 Expenses : Cost of materials consumed
Slide 42: Tata Motors Group Financials Q2 FY24
Tata Motors Group Financials Consolidated Quarter ended September 30, 2023 ₹ Cr. IndAS Tata Tata JLR Commercial Passenger Others* Consolidated Vehicles Vehicles Revenue from operations 71,787 20,087 12,174 1,081 105,128 Grant income / incentives 673 68 71 12 824 Expenses : Cost of materials consumed
Slide 43: Jaguar Land Rover financials
Tata Motors Group Financials Jaguar Land Rover Q 2 F Y 2 5 | I F RS , £ m Q2 H1 H1 Q2vQ2 Q2vQ1 H1vH1 Q2 FY24 Q1 FY25 FY25 FY24 FY25 YoY QoQ YoY Reven u es 6 , 8 57 7 , 2 73 6 , 4 75 1 3 , 760 1 3 , 748 (3 8 2) (7 9 8) (1 2 ) Ma teria l a n d oth er cos t of s a les (4 , 1 66) (4 , 2 28) (3 , 7 84) (
Slide 44: China JV
China JV Q 2 F Y 2 5 | I F RS , £ m Q2 Q1 Q2 H1 H1 Q2vQ2 Q2vQ1 H1vH1 FY24 FY25 FY25 FY24 FY25 YoY QoQ YoY R et a il volum es ( ‘ 0 0 0 unit s ) 13.1 10.5 10.5 26.0 21.0 ( 2.6) - ( 5.0) Wholes a le volum es ( ‘ 0 0 0 unit s ) 12.3 11.8 9.9 25.4 21.7 ( 2.4) ( 1.9) ( 3.7) R evenue 374 361 310 804 670 (
Slide 45: Investment Spending in H1 FY25 ₹4.0K Cr
Investment Spending in H1 FY25 ₹4.0K Cr Steady investment spends to continue towards new technologies, powertrains H 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 1,641 4,038 436 1,049 1,378 2,397 1,205 499 1,348 942 550 443 2,660 1,455 905 Capitali
Slide 46: Q2 YoY operational FX slightly unfavourable, offset by hedging
Q2 YoY operational FX slightly unfavourable, offset by hedging Total Q2 FX and commodity impact £80m favourable YoY, primarily reflecting FX revaluation Q 2 F Y 2 5 | I F R S, £ m (3) 83 80 115 (14) (29) 15 (17) Operational exchange1 Realised FX hedges FX impact on EBIT FX revaluation of net Other F
Slide 47: Q2 Retails of 103K, down 3% YoY
Q2 Retails of 103K, down 3% YoY Retail sales for the first six months of the financial year were 214,870 units, up 3% YoY F Y 2 4 | R e t a i l s | B r a n d s | U n it s in 0 0 0 ’s TOTAL 57.1 52.2 48.8 111.2 106.6 103.1 30.3 27.4 26.7 Q2 16.2 15.3 14.2 11.2 11.4 10.0 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY2
Slide 48: Retails up YoY in North America & UK
Retails up YoY in North America & UK Powertrain mix 78% electrified F Y 2 4 | R e t a i l s | R e g i o n s | U n it s in 0 0 0 ’s UK N. AMERICA EUROPE CHINA OVERSEAS JLR POWERTRAIN MIX(RETAILS) 28.1 27.3 25.4 24.5 20% 23.3 22.8 21% 21.0 20.6 20.5 28% 19.4 19.1 18.7 16.3 17.9 16.0 Q2 ---------------
Slide 49: Debt profile
Debt profile Strong liquidity; debt maturities well spread out Jaguar Land Rover Tata Domestic Business* IFRS, £m Debt maturity profile IndAS Debt maturity profile Total Total liquidity Total ₹ Cr 11,044 4,934 4,628 950 1,520 Undrawn 732 3,320 RCF 918 1,520 123 10,312 3414 2,978 6,774 73 721 304 3,3