Tata Motors Passenger Vehicles Ltd · NSE:TMPV
Tata Motors Passenger Vehicles — Tata Motors — Q1 FY2022 Earnings Presentation
43 slides from Tata Motors Passenger Vehicles's earnings presentation, Jul 26, 2021
Slide 1: Exchange filing cover letter on analyst 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 Kind Attn: Mr Khushro A. Bulsara Kind Attn: Mr Lokesh Bhandar
Slide 2: Tata Motors Group Results for the quarter ended 30th June 2021
Tata Motors Group Results for the quarter ended 30 th June 2021
Slide 3: Safe harbour statement
Safe harbour statement Statements in this presentation describing the objectives, projections, Accounting Standards estimates and expectations of Tata Motors Limited (the “Company”, • Financials (other than JLR) contained in the presentation are as per IndAS “Group” or “TML”) Jaguar Land Rover Autom
Slide 4: Product and other highlights
Product and other highlights Exciting products and milestones, committed to a sustainable future Taking premium quotient to next level with Roll out of 200,000th Nexon Inauguration of India’s largest solar #Dark editions Carport New long wheel base Range Rover Evoque Record order bank of c. 110,000
Slide 5: Q1: Revenue ₹66.4KCr, EBITDA 8.3%, PBT(bei) ₹(2.6)KCr
Q1: Revenue ₹ 66.4KCr, EBITDA 8.3%, PBT(bei) ₹ (2.6)KCr Significant improvement YoY, QoQ impacted by pandemic and semiconductor supply issues Q 1 F Y 2 2 | C o n s o l i d a t e d | IndAS, ₹ K C r Revenue PBT (bei) Global Wholesales ₹KCr ₹KCr (K units) YoY +107.6 % YoY +58.3 % YoY +132.6 % 88.6 334.
Slide 6: EBIT (1.3)%; Net Auto Debt ₹61.3KCr
EBIT (1.3)%; Net Auto Debt ₹ 61.3KCr Working capital impacts Net Auto Debt by ₹ 16.5 KCr; To recover from H2 Q 1 F Y 2 2 | C o n s o l i d a t e d | IndAS, ₹ K C r Revenue 2.2 4.5 7.2 20.5 66.4 64.2% 22.5% 14.1% 6.8% 32.0 107.6% growth Q1FY21 Volume & Mix Price Translation Others Q1FY22 Profitabilit
Slide 7: Jaguar Land Rover Automotive plc
JAGUAR LAND ROVER AUTOMOTIVE PLC ADRIAN MARDELL Chief Financial Officer Results for the quarter ended 30th June 2021 6
Slide 8: Q1 FY22 PBT £(110)m, EBIT (0.9)%, free cash flow £(996)m
Q1 FY22 PBT £(110)m, EBIT (0.9)%, free cash flow £(996)m Q1 FY22 improved YoY but constrained by semiconductor supply Q1 FY22 | IFRS, £m Retails Revenue PBT (bei) (K units) £m £m YoY +73.7 % YoY 68.0% 534 6,538 123.4 124.5 4,966 74.1 2,859 -110 -413 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Q1
Slide 9: Q1 FY22 Performance highlights
Q1 FY22 Performance highlights • Retail sales up 68% overall, with each region up YoY Volume & • Semiconductor shortages constrained wholesales by 30k units, though still up 73% YoY Revenue • Record order bank of c. 110k units at 30th June, of which c. 29k are Defender orders • China retails were up
Slide 10: Wholesales and retails by region
Q1 FY22 Retail sales 124.5k, up 68% from prior year lockdowns Wholesales up 73%, but 30k units lower than potential demand due to semiconductor supply constraints Q1 FY22 | Retail Units in 000’s UK N. AMERICA EUROPE CHINA OVERSEAS TOTAL 25. 27. 12 23. 31.4 23. 20. 8 0 4.5 7 7 16. 74. 8 1 RETAILS 11.
Slide 11: Inventories down in Q1 FY22 as supply constrained to meet demand
Inventories down in Q1 FY 22 as supply constrained to meet demand Higher retails reflect retailer stock sales and CJLR retails UNITS Retailer Inventory JLR Inventory 120k 110k 100k 90k 80k 70k 60k 50k 40k 30k 20k 10k 0k Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 12: Retails of all model families up YoY, led by Range Rover & Defender
Retails of all model families up YoY, led by Range Rover & Defender Electrified sales now 66% of total, up 4pts QoQ and 24pts YoY Q1 FY22 | Retail Units in 000’s RANGE ROVER DEFENDER JLR POWERTRAIN MIX 59.1 66% electrified 38.0 17.2 YoY +56% 2.2 YoY +688% Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 DISCOVERY JA
Slide 13: Q1 loss of £110m; EBIT (0.9)%
Q1 loss of £110m; EBIT (0.9)% Higher volumes and pricing YoY partly offset by linear costs, reduced furlough and capitalisation Q1 FY22 | IFRS, £m Volume / mix 431 VME (7.5% to 3.1%), Warranty 18 Furlough (115) Operational exchange Underlying VME from Manufacturing import (87) P&A 74 Admin expense (
Slide 14: Free cash outflow £996m, primarily working capital (£922m)
Free cash outflow £996m, primarily working capital (£922m) Proforma liquidity remains strong at £6.6b after new bonds and increased undrawn RCF Q1 FY22 | IFRS, £m D&A 485 Payables (1,380) Inventory 273 663 Receivables 257 (56) 497 (110) (571) (996) (922) PBT Non-cash Cash Cash profit Investment Work
Slide 15: Q1 Investment £571m – 11.5% of revenue
Q1 Investment £571m – 11.5% of revenue On-track to achieve £2.5b FY22 target Q1 FY22 | IFRS, £m 251 571 188 320 132 Capitalised Expensed Total Capital Total R&D R&D R&D Investment* Investment Q1 FY21 168 107 275 273 548 * Of which £237m relates to purchases of property, plant and equipment in Q1 FY2
Slide 16: Business Update
BUSINESS UPDATE 15
Slide 17: Refocus transformation programme fully launched
Refocus transformation programme fully launched £150m delivered in Q1 FY22, primarily early benefits in market performance TRANSFORMATION OFFICE REFOCUS PROGRESS IN Q1 PILLAR 5&6 MARKET PERFORMANCE 1 2 3 • £100m Lower VME including demand pull and finance mix QUALITY PROGRAMME DELIVERED improvements
Slide 18: Semiconductor supply status and outlook
Semiconductor supply status and outlook Situation is dynamic and difficult to forecast; but expected to improve in H2 FY22 IMPACT ACTION • Production impacted by semiconductor shortages, resulting • Mission control centre established with risk surveillance and from structural supply constraints as w
Slide 19: Outlook and key priorities
Outlook and key priorities Reimagine medium and long-term targets remain unchanged MEDIUM AND LONG TERM FY22 OUTLOOK TARGETS MEMO: Q2 H2 FY24 FY26 H2 FY21 REVENUE £3.7b NOT GUIDED INCREASING >£30b £12.5b EBIT MARGIN NEGATIVE POSITIVE ≥7% ≥10% 6%* INVESTMENT £2.5b FULL YEAR c. £2.5b c. £3b £1.3b FREE
Slide 20: Tata Motors (Standalone)
Tata Motors (Standalone) PB Balaji 19
Slide 21: Q1 Revenue ₹11.9KCr; EBITDA 1.8%, PBT(bei) ₹(1.3)KCr
Q1 Revenue ₹11.9 KCr; EBITDA 1.8%, PBT(bei) ₹ (1.3)KCr , FCF ₹ (8.0)KCr Second wave of the pandemic impacted recovery Q 1 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ K C r Wholesales Revenue ₹KCr YoY + 343.1 % PBT (bei) YoY + 39.8 % (K units) YoY + 351.4 % ₹KCr 20.0 195.9 0.1 11.9 114.2 -1.3 25.3
Slide 22: Performance highlights
Performance highlights Q1FY22 | TML Standalone • Revenue (+343%); QoQ recovery affected due to the pandemic Volume & • CV (+355%) ; YoY improvement in mix. Revenue • PV (+336%) ; Strong order book, 53.8K units retails in Q1 FY 22. • EV (+5x growth) ; Highest ever quarterly sales at 1,715 units. • EB
Slide 23: EBIT at (6.2)%; PBT (bei) ₹(1,289) Cr
EBIT at (6.2)%; PBT (bei) ₹ (1,289) Cr Better volumes, improved product mix, offset partially by sharp commodity inflation and fixed costs Q 1 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ INR ₹ Cr. IndAS FME& Others: ₹ (422) Cr D&A and PDE : ₹(170)Cr EBIT % (61.3)% 63.0% (0.2)% (3.0)%. (5.0)% 0.3%
Slide 24: Q1 FY22 Free Cash Flows ₹(8.0)KCr
Q1 FY22 Free Cash Flows ₹(8.0) KCr Positive operating cash profits. Working capital unwind impact ₹(7.1) KCr. To recover from Q2 FY22 Payables, acceptances ₹ 3,846 Cr Q 1 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ INR Trade receivables ₹ 97 Cr Inventories ₹ 1,942 Cr Others ₹ 1,264 Cr Q1 FY22 Q1
Slide 25: Investment Spending ₹0.7KCr
Investment Spending ₹ 0.7 KCr Capex managed dynamically in a fluid environment Q 1 F Y 2 2 | T M L S t a n d a l o n e | IndAS, ₹ INR Q1 FY22 Q1 116 138 254 238 492 FY21 24
Slide 26: Commercial Vehicles
Commercial Vehicles Girish Wagh & PB Balaji 25
Slide 27: Market shares at 40.5%, M&HCV and ILCV shares improve further
Market shares at 40.5%, M&HCV and ILCV shares improve further Action plans underway to win back shares in SCV while salience has increased significantly Commercial Vehicles SCV salience has increased 64.2% 64.7% 45.1% 43.0% 42.4% 56.6% 40.5% 49.6% FY19 FY 20 FY 21 Q1 FY22 FY19 FY 20 FY 21 Q1 FY22 MH
Slide 28: Volumes 49.5K (+363%), Revenue ₹6.5KCr (+355%)
Volumes 49.5K (+363%), Revenue ₹ 6.5KCr (+355%) EBITDA 0.1% (+4070bps) – Sequential recovery impacted due to short term challenges C o m m e r c i a l V e h i c l e s | Q 1 F Y 2 2 | IndAS, ₹ K C r Wholesales (incl. exports ) Exports Retails (domestic) Revenue (K units) (K units) ₹KCr YoY +362.5 % Y
Slide 29: CV – Business update
CV – Business update Q1 performance impacted by lockdowns. Outlook turns positive as restrictions ease Key Highlights Bright Spots Challenges • Sale in Q1 FY22 was 4.6x of Q1 FY21, • Transporter’s sentiment index dropped in Q1. • Transporter profitability below Q4 levels, while being 56% lower than
Slide 30: Passenger Vehicles
Passenger Vehicles Shailesh Chandra & PB Balaji 29
Slide 31: PV business continues to build on momentum
PV business continues to build on momentum Focused and agile actions helped tide over the pandemic impact Market shares POWERTRAIN MIX 10.0% EV, 0.2% EV, 2% EV, 3% 8.2% Diesel, 28% Diesel, 18% Diesel, 23% 6.3% 4.8% Petrol, 71% Petrol, 80% Petrol, 75% FY20 FY21 Q1 FY22 FY19 FY20 FY21 Q1 FY22 • Achiev
Slide 32: Volumes 64.6K (+343%), Revenue ₹5.3KCr (+336%)
Volumes 64.6K (+343%), Revenue ₹ 5.3KCr (+336%) EBITDA 4.1% (+2040bps); Dealer inventory reaching healthy levels Passenger Vehicles | Q1 FY22 |IndAS, ₹KCr Wholesales (incl. exports ) Exports Retails (domestic) Revenue (K units) (K units) ₹KCr YoY + 343.2 % YoY +189.3 % YoY +335.7 % 84.2 0.4 79.6 6.6
Slide 33: PV: Business update
PV: Business update Actions identified to build on the momentum as markets open up Demand generation Demand fulfilment Profitability • Targeted actions in identified micro- • Realised the gains of enhanced • Maintain strict cost controls as per markets for demand recovery capacity and focus on strea
Slide 34: Tata Motors Finance: AUM ₹41.4KCr, PPOP ₹183Cr, PBT ₹(471)Cr
Tata Motors Finance: AUM ₹ 41.4KCr, PPOP# Rs.183Cr, PBT ₹(471)Cr Collections severely impacted due to the second pandemic wave, resulting in higher NPA’s Q 1 F Y 2 2 | T a t a M o t o r s F i n a n c e | IndAS, ₹ ( I N R ) IndAS Q1 FY21 Q1 FY22 CV Market Share - 25% • Disbursals up Y-o-Y by 216% on
Slide 35: Looking ahead
Looking ahead We remain committed to consistent, competitive, cash accretive growth and to deleverage the business Outlook • Demand situation continues to improve as vaccination rates pick up • Supply situation challenging. Semiconductor issues, commodity inflation and stoppages from lockdowns to im
Slide 36: Tata Motors Group: Additional details
Tata Motors Group : Additional details Results for the quarter ended 30 th June 2021
Slide 37: Tata Motors Group Financials (Consolidated)
Tata Motors Group Financials Consolidated Quarter ended 30 June Q1 FY22 Q1 FY21 Y-o-Y change Global Wholesales* 213,629 91,835 132.6% Revenue 66,406 31,983 107.6% EBITDA 5,481 828 - EBITDA Margin 8.3% 2.6% 570 bps EBIT (850) (4,831) - EBIT Margin (1.3)% (15.1)% 1380 bps Profit before exceptional ite
Slide 38: Tata Motors Group Financials (Standalone)
Tata Motors Group Financials Standalone (JO) Quarter ended 30 June Q1 FY22 Q1 FY21 Y-o-Y change Total Volumes : CV+ PV + Exports (Units) 114,170 25,294 351.4% CV (Units) 42,800 9,515 349.8% PV (Units) 64,376 14,583 341.4% Export 6,994 1,196 484.8% Revenue 11,904 2,687 343.1% EBITDA 217 (788) EBITDA
Slide 39: Tata Motors Group Financials (Jaguar Land Rover)
Tata Motors Group Financials Jaguar Land Rover Q1 FY21 Q4 FY21 Q1 FY22 CHANGE YoY CHANGE QoQ Revenues 2,859 6,538 4,966 2,107 (1,572) Material and other cost of sales (1,833) (4,065) (3,149) (1,316) 916 Employee costs (435) (619) (592) (157) 27 Other (expense)/income (657) (1,010) (908) (251) 102 Pr
Slide 40: Debt profile
Debt profile Strong liquidity; debt maturities well spread out JLR Total IndAS TML (S) Total IFRS, £m Debt maturity profile 6,740 ₹ Crores Debt maturity profile 28,637 735 594 £0.8b new bonds and increase to undrawn RCF in July , increasing liquidity to £6.6b 8,747 1,771 RCF RCF RCF 1,310 1,000 625
Slide 41: China JV: Retails +5% YoY but wholesales (23)% due to supply constraints
China JV: Retails +5% YoY but wholesales (23)% due to supply constraints Revenue lower inline with wholesales and impacting profitability Q 1 F Y 2 2 | I F RS , £ m (Presented on 100% basis) Q1 FY22 Q1 FY21 Change Retail volumes ('000 units) 14.8 14.1 0.7 Wholesale volumes ('000 units) 12.7 16.5 (3.
Slide 42: FX impact - Consolidated & Standalone
Tata Motors Group FX impact-Consolidated & Standalone (JO) Quarter ended 30 June Consolidated Q1 FY22 Q1 FY21 Realised Foreign Exchange 27 (29) Total FX impacting EBITDA & EBIT : gain/(loss) 27 (29) Unrealised Foreign Exchange (42) 76 Total FX impact on PBT : gain/(loss) (15) 47 Quarter ended 30 Jun
Slide 43: FX & commodities £(42)m YoY - unfavourable operating FX net of hedges
FX & commodities £(42)m YoY - unfavourable operating FX net of hedges QoQ £(110)m reflecting less favourable revaluation Q 1 F Y 2 2 | I F RS , £ m Q1 FY22 QoQ CHANGE YoY CHANGE Operational exchange 1 n/a 7 (87) Realised FX 2 2 (12) 51 Total FX impacting EBITDA & EBIT n/a (5) (36) Revaluation of CA/