Tata Motors Q2 results: Consolidated loss widens YoY, misses estimate; sales rise 15%
However, the carmaker reported a 14.7 per cent year-on-year growth in consolidated revenue from operations to Rs. 61,378.8 crore for the reported quarter, which was sharply above Street’s estimate.
The company’s operational performance took a beating in the quarter as consolidated operating margin shrank 210 basis points on-year to 8.4 per cent owing to a sharp rise in input costs during the past year.
“Semiconductor issues and commodity inflation will continue to impact the near term and we are doing our best to manage them. The performance is expected to improve gradually starting in H2 as both the supply chain and the pandemic situation improves,” Tata Motors said.
The stellar topline performance of the company was down to a strong show from the domestic passenger vehicle and commercial vehicle business. Tata Motors India reported a 91 per cent on-year rise in revenues and a 130 bps on-year improvement in EBITDA margins to 3.9 per cent despite cost headwinds.
However, its India business reported a pre-tax loss of Rs. 800 crore for the reported quarter thanks to semiconductor shortage and higher input costs. The company said that its passenger vehicles business in India is showing strong demand whereas the CV business is gradually improving.
“During the quarter, we accelerated the sales momentum to increase market share in every segment of commercial vehicles, recorded a decade high sale in passenger vehicles and delivered the highest ever quarterly sales in electric vehicles,” said Girish Wagh, executive director at Tata Motors India.
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