Home-grown auto major Tata Motors on Wednesday reported poor quarterly performance on all metrics except the top line, which reported year-on-year growth in the first quarter of the financial year 2022-23 (Q1FY23). 

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The company’s consolidated net loss widened to Rs 4,951 crore in the quarter ended June 2022 as against the consolidated net loss of Rs 4,450 crore in the same quarter last fiscal, Tata Motors said in a regulatory filing. 

On the contrary, the consolidated revenue from operations of the company surged over 8 per cent to Rs 71,935 crore during the June quarter as against Rs 66,406 crore in the year-ago period, it said. 

Even on a standalone basis, Tata Motors reported a net loss of Rs 181 crore, putting up a better performance from a net loss of Rs 1,321 crore in the year-ago period, and standalone revenue from operations stood at Rs 14,874 crore in Q1FY23 from Rs 6,577 crore in Q1FY22, the company said. 

UK-based subsidiary Jaguar and Land Rover’s revenue stood at £ 4.4 billion, down 11.3 per cent YoY, while EBITDA was at 6.3 per cent, down 270 basis points, the company said in the filing. 

“We expect demand to remain strong despite worries on inflation and geo-political risks while the supply situation is expected to improve further,” Tata Motors said.  

It added that the cooling commodity prices are expected to aid improvement in underlying margins and eventually the company aims to deliver strong improvements in EBIT and free cash flows from Q2 onwards to get to near net auto debt free by FY24. 

Financial performance is expected to improve significantly over the year with chip supply expected to improve through enhanced supplier engagement including long-term partnership agreements as well as ramping up New Range Rover and Range Rover Sport production, Tata Motors said. 

The company continues to target achieving a 5 per cent EBIT margin and £1 billion positive free cash flow in FY23, it added. 

“Our medium and longer-term financial targets under the Reimagine strategy, underpinned by the Refocus transformation programme, remain unchanged, including improving EBIT margins to 10% or more by FY26 and improving free cash flow to achieve near zero net debt by FY24,” Auto major said.