Tata Motors’domestic

biz reports best net sales

Domestic automotive business accounts for 31% of consolidated net sales in Q3
KRISHNA KANT
Mumbai, 7 February

T
ata Motors’ domestic business has
continued to outgrow its global
business as it reported its highest
quarterly net sales of around ~22,300
crore in the December quarter of
financial year 2021-22 (Q3FY22), a 45 per
cent jump year-on-year (YoY) from
~15,390 crore a year.
In comparison, the company’s con-
solidated net sales declined 3.2 per cent
YoY to around ~72,500 crore, from around
~74,900 crore a year ago.
This was also the first quarter when
the company reported profits at its pas- ON A HIGH
senger vehicle (PV) division since
Q1FY18, when separate numbers were
made available. Before that, the entire The historical trend in Tata Motors domestic automotive business
domestic business was a single reporting
segment for the company.
The domestic PV business reported
profits before interest and taxes (PBIT)
of ~835 crore in Q3FY22, against a loss of
~381 crore a year ago. The commercial
vehicle (CV) segment, however, reported
a loss of ~77 crore in Q3FY22, against PBIT
of ~350 crore a year ago.
The domestic automotive division,
which includes the CV and Tata-branded
PV divisions, accounted for 31 per cent
of consolidated net sales in Q3FY22, just
Source: Capitaline, Compiled by BS Research Bureau
a notch below the decade-high figure of
31.6 per cent in Q2, and up from 20 per
cent in Q3FY21. (See the adjoining chart)
However, on a trailing 12-months
of ~12,316 crore in Q3FY22, up 29.2 per
cent YoY from ~9,530 crore a year ago.
Tata Capital and
basis, the domestic automotive business The current financial year has so far subsidiary to raise
accounted for 26 per cent of the compa-
ny’s consolidated net sales, the highest
been one of the best for Tata Motors’
domestic automotive business, especially ~1,500-crore debt
since Q3FY13. Tata Motors’ consolidated its PV segment, since the acquisition of DEV CHATTERJEE
business includes its British subsidiary JLR in 2007. For nearly a decade after Mumbai, 7 February
Jaguar Land Rover (JLR), the domestic that acquisition, the company’s finances
vehicle financing division, besides the at the consolidated level were dominated Tata Capital and its subsidiary, Tata Capital
domestic CV and PV divisions. by the performance of its British subsid- Financial Services, are planning to raise fresh
In contrast, the JLR division, which iary, while the domestic business only debt of ~1,500 crore through bonds. The
still accounts for two-thirds of Tata played a marginal role. boards of both companies cleared the
Motors’ consolidated net sales, is facing For example, between 2013 and 2020, fundraising by issuing non-convertible
a slowdown due to semiconductor chip the domestic business contributed just debentures (NCDs) in the last week of
shortage. JLR’s net sales dropped 18.3 per 17 per cent to Tata Motors’ consolidated January.
cent YoY in Q3FY22 to ~47,900 crore, from revenue on average and very little to Tata Sons has infused ~3,500 crore in
~58,600 crore a year ago. profits as the company consistently lost Tata Capital in the last five years. Of this,
The growth at the company’s domes- money in its domestic PV business. ~1,000 crore was infused in financial year
tic business is being driven by its PV divi- Most analysts expect Tata Motors’ 2019-20 (FY20) and ~2,500 crore in FY19. Tata
sion, which reported its highest-ever domestic business to continue its good Sons has not invested in TCL’s equity thus far
quarterly revenues of ~8,600 crore in Q3, show, driven by a robust demand for its in the current fiscal. In the fresh fundraise, a
a 72 per cent jump YoY. In comparison, new range of sports utility vehicles and banker said Tata Capital will raise ~1,000
the CV division — that includes buses, first-mover advantage in the electric crore while another ~500 crore will be raised
trucks and light CVs — reported revenues vehicle segment. by Tata Capital Financial Services.