Tata Motors FY21 net loss widens to Rs 13,395 crore; revenue slips

Tata Motors reported a consolidated net loss of Rs 13,395 crore for the financial year ended March 31, 2021. The Indian auto major had posted a loss of Rs 11,975 crore in the previous fiscal. The rise in loss came along with a dip in total revenue for the fiscal under review, which slipped almost 4.3 per cent to Rs 2,49,795 crore in FY21 from Rs 2,61,068 crore in FY20.

Earnings before interest, tax, depreciation and amortisation (EBITDA) margin for FY21 increased 370 basis points to 12.2 per cent on annual basis. Of this, Tata Motors on standalone basis, along with joint operations, reported EBITDA margin of 4.3 per cent for FY21. Jaguar Land Rover (JLR), on the other hand, had an EBITDA margin of 12.8 per cent during the period.

Tata Motors reported 14 per cent decline in domestic sales to 437,300 units during FY21. Its luxury subsidiary JLR registered 13.6 per cent dip in retails for the fiscal at 439,600 units despite double-digit uptick in the last quarter of FY21.

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JLR saw strong recovery in Q4 FY21 as compared to year-ago period, in Chinese and North American markets during FY21, the Tata group's automotive arm said in a regulatory filing. It saw investments to the tune of 2.3 billion pounds in products and technologies and positive cash flow at 185 million pounds during the last fiscal.

"JLR has embarked on Reimagine strategy to make the company a world leader in electrified luxury vehicles, sustainability, and new automotive technologies to deliver a strong market performance, which shall create long-term shareholder value," the filing said.

Meanwhile, Tata Motors' India operations continued their strong sequential recovery in the quarter despite the surprise loss of Rs 7,605 crore in the last quarter of FY21. Commercial vehicle revenues recovered to pre-pandemic levels, whereas passenger vehicle revenues reached multi-year highs on the back of the 'New Forever' portfolio, the company said.

Commenting on the outlook for the current quarter, Tata Motors said that demand continues to be strong, but the supply situation is likely to suffer over the next few months due to disruptions from COVID-19 lockdowns in India and semi-conductor shortages worldwide.

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"We expect Q1 FY22 to be relatively weak due to this as well as rising commodity inflation and expect to improve gradually from the second quarter. The business has demonstrated strong resilience in the face of adversity and its fundamentals are strong. We will remain agile to address these challenges and drive consistent, competitive and cash accretive growth over the medium to long term," the company said.

"As I look forward, we will continue to remain vigilant about the evolving COVID situation and have set in motion a comprehensive 'Business Agility Plan' to protect and serve the interests of our customers, dealers and suppliers. We will review and plan for the critical raw materials to cater to a volatile demand outlook while working closely with our ecosystem partners to meet the same. We believe this approach best serves the interests of all stakeholders by utilising the cash invested in the entire ecosystem in the most optimal manner," said Tata Motors CEO Guenter Butschek.

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