NEW DELHI: Two of India’s largest automakers reported very contrasting numbers for the quarter ended June 2022 (Q1FY2023). Country’s largest carmaker- Maruti Suzuki (MSIL) on Wednesday reported a 130% year-on-year (YoY) surge in net profit at Rs 1,012.80 crore, while home-grown auto-major Tata Motors’ consolidated losses widened to Rs 5,006.60 crore in Q1FY2023 compared with Rs 1,032.84 crore loss in March quarter (Q4FY2022) and Rs 4,450.92 crore loss in the year-ago quarter(Q1FY2022).
Analysts at large were expecting Tata Motors to report Rs 1,200-1,700 crore loss during the quarter but Tata Motors’ once again surprised everyone as its British subsidiary Jaguar Land Rover (JLR) remains a laggard. Tata Motors group chief financial officer P B Balaji said the loss recorded in the quarter was due to JLR as the other two businesses -- CV (Commercial Vehicle) and PV (Passenger Vehicle) -- were making an operating profit.
JLR posted revenue of 4.4 billion pound in the first quarter, down 7.6% from the fourth quarter of FY22, impacted by supply challenges including semiconductor shortages. JLR’s loss before tax in the quarter was £524 million and its EBIT margin stood at minus 4.4%. It sold 78,825 vehicles in the June quarter, down 37% compared with the April-June period of last fiscal.
On a standalone basis, Tata Motors reported a net loss of Rs 181 crore from a net loss of Rs 1,321 crore in the year-ago period and revenue from operations more than doubled to Rs 14,874 crore. Tata Motors’ consolidated revenue for the quarter rose 8.68% YoY to Rs 71,227.76 crore.
Maruti Suzuki also missed the street estimate as analysts at large were expecting the carmaker to report a PAT of around Rs 1,500 crore. The increase in prices of commodities adversely impacted the operating profit of MSIL.