Top Indian Companies: Tata Motors Limited

Tata Motors Limited is an Indian multinational automotive manufacturing company, headquartered in the city of Mumbai, India which is part of Tata Group. The company produces passenger cars, trucks, vans, coaches, buses, luxury cars, sports cars, construction equipment.

Formerly known as Tata Engineering and Locomotive Company (TELCO), the company was founded in 1945 as a manufacturer of locomotives. The company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.

Tata Motors has auto manufacturing and vehicle plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa, the United Kingdom, and Thailand.

It has research and development centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and South Korea, the United Kingdom, and Spain.

Tata Group entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany.

In 2008, Tata Motors acquired the English car maker Jaguar Land Rover, manufacturer of the Jaguar and Land Rover from Ford Motor Company.

Operations

Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain, and South Africa. It plans to establish plants in Turkey, Indonesia, and Eastern Europe.

Electric vehicles

In December 2019, Tata Motors unveiled the Nexon EV, an SUV with a 30.2KWh lithium-ion battery and a consistent range of 312 km on a single charge. With 525 units of Nexon EV sold in India last month, Tata Nexon EV was the best-selling electric car in the month of April 2021 in India.

Shareholding Pattern of Tata Motors

The Shareholding Pattern page of Tata Motors Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc.

Shareholding Pattern - Tata Motors Ltd.

Holder's Name No of Shares % Share Holding

NoOfShares 3320552265 100%

Promoters 1540885009 46.4%

ForeignInstitutions 483898500 14.57%

BanksMutualFunds 216562868 6.52%

CentralGovt 4789604 0.14%

Others 321013148 9.67%

GeneralPublic 517230260 15.58%

FinancialInstitutions 236172876 7.11%

FY2023 Q4 and Full Year Results

Fuelled by rising domestic demand, pricing actions and easing supply chain issues, Tata Motors reported a consolidated net profit of Rs 5,408 crore in the March quarter and aims to improve the profit margins this fiscal despite headwinds.

After driving into the profitability lane, the homegrown auto maker expects to continue new product launches, debottleneck capacities and push EV penetration further to deliver "market-beating growth in coming years".

The company had posted a consolidated net loss of Rs 1,033 crore in the January-March quarter of 2021-22 fiscal, Tata Motors said in a regulatory filing.

Easing inflation, better mix, pricing actions and favourable operating leverage also resulted in strong improvements in margins and profits, the company stated.

Total revenue from operations stood at Rs 1,05,932 crore in the fourth quarter as against Rs 78,439 crore in the year-ago period, it added.

On a standalone basis, the automaker reported a net profit of Rs 2,696 crore for the period under review as against Rs 413 crore in the fourth quarter of 2022-22.

For the year ended March 31, 2023, the auto major reported a consolidated net profit of Rs 2,414 crore as compared with a net loss of Rs 11,441 crore in FY22.

Total consolidated revenue stood at Rs 3,45,967 crore in the period under review, its highest ever, as against Rs 2,78,454 crore in 2021-22 fiscal.

"The distinct strategy employed by each business is delivering, in unison, leading to a sharp improvement in overall results. We remain confident on growth with cash flow generation, to achieve our stated goals," Tata Motors Group Chief Financial Officer PB Balaji said.

He noted that the company has lined up a capex of Rs 38,000 crore for JLR as well as for domestic businesses in the current fiscal. The total capex stood at Rs 30,000 crore in FY22.

Tata Motors said its remains optimistic on the demand situation despite near-term uncertainties and expect a moderate inflationary environment in the near term.

"In this context, we aim to further improve and deliver a strong performance in FY24. The momentum is expected to build through the year factoring in seasonality, stabilisation of JLR supply chain and post RDE impact in India," it added.

Jaguar Land Rover (JLR) posted revenues of 7.1 billion pounds, up 49 per cent year on year, in the fourth quarter ended March 31, 2023.

Full year revenue for FY23 stood at 22.8 billion pounds, up 25 per cent compared with FY22, as chip supply improved further.

"For the fiscal year ahead, while we are mindful of the headwinds that remain, our target is to increase EBIT margins to over 6 per cent and deliver significantly positive free cash flow to reduce our net debt further, while increasing investment to 3 billion pounds," JLR's interim CEO Adrian Mardell stated.

The brand expects the gradual improvements in chip supply to continue during the fiscal year.

JLR reported a 24 per cent year-on-year increase in dispatches in the fourth quarter to dealers at 94,649 units.

FY23 wholesales stood at 3,21,362 units, up 9 per cent, as compared with that of FY22.

Tata Motors Passenger Vehicles Managing Director Shailesh Chandra said the company recorded its third successive year of industry-beating growth to register its highest-ever annual domestic sales and achieving a robust 46 per cent sales growth over FY22.

Going forward, the company expects to continue delivering on new product launches, debottleneck capacities and drive EV penetration further to deliver market-beating growth in coming years, he added.

For FY23, domestic passenger vehicle wholesales stood at 5.38 lakh units, up 45 per cent as compared with 2021-22 fiscal.

On the commercial vehicle business, Tata Motors said the company aims for higher realisations and cost savings to secure double-digit EBITDA margins for FY24 and improve the performance of all business verticals.

The company's commercial vehicle domestic business grew by 22 per cent in FY23 as compared with FY22.

Commercial vehicle wholesales in domestic market last fiscal stood at 3.92 lakh units, up 22 per cent as compared to FY22.

The company said its board recommended a final dividend of Rs 2 per ordinary share (100 per cent of face value) and Rs 2.1 per share for DVR shareholders subject to approval by the shareholders.

Tata Motors said there was a net auto debt reduction of Rs 13,800 crore in FY23.

The India business net debt was lowest in 15 years at Rs 6,200 crore, it added.

Shares of the company ended 0.78 per cent down at Rs 515.65 apiece on the BSE.

Brokerage Outlook

Tata Motors continues to prudently address the supply chain bottlenecks via an agile approach in planning and execution, that is evident through their accelerated sales in Q3FY22.

Strong consumer demand for CV, PV and EV with the receding Omicron effect, robust order book for JLR and launch of new products and variants augurs well to support sales growth in future.

With positive outlook, Geojit upgrades the rating on the stock to BUY with a rolled forward TP of Rs. 583 based on SOTP.

ESG and Sustainability

Tata Motors is striving to improve the environmental performance of its manufacturing operations, products, and the supply chain.