Tata Motors Q4 FY23 Results: Net profit of Rs 5,407 crore

Over 40 new vehicles and 150 variants were introduced in FY23. Some significant examples include the introduction of India's first CNG vehicle, the MHCV, Yodha 2.0, the Intra V20 bi-fuel, and the Intra V50. Vehicles now have cutting-edge ADAS technology.

Tata Motors has revealed that its consolidated revenue for FY23 climbed by 24.2% year on year to INR 345.9k crore, an all-time high. Q4FY23 was one of the company's greatest quarters, with consolidated revenues of INR 105.9k crore, representing a 35.1% YoY growth.

In FY23, the commercial vehicle industry continued to recover, driven by robust demand for MHCVs and the revival of the CV passenger market. The solid demand for heavy trucks required to support the government's strong infrastructure push and rising e-commerce, construction, and mining activity drove MHCV growth.

However, high-interest rates and a strong base effect hampered demand for small and light commercial vehicles. Due to the current economic condition of most of its outside customers, CV exports remained slow.

Despite a 3% decrease in wholesales, Q4 revenue was up 15% year on year, reflecting a stronger mix and a higher market operating price. The company achieved a double-digit EBITDA margin of 10.1% (+420 bps year on year) and good EBIT margins of 8.6% (520 bps) in Q4 FY23. Full-year sales increased by 35%, EBITDA and EBIT margins increased by 370 and 480 basis points, respectively, and PBT (bei) increased by 3.2K Cr. Profits and market share have improved sequentially as a result of the demand-pull strategy.

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Over 40 new vehicles and 150 variants were introduced in FY23. Some significant examples include the introduction of India's first CNG vehicle, the MHCV, Yodha 2.0, the Intra V20 bi-fuel, and the Intra V50. Vehicles now have cutting-edge ADAS technology.

In the Future

The anticipation of price hikes following BS VI Phase II will have a short-term impact on consumption in Q4 FY23. We remain positive about overall CV demand in FY24, despite near-term challenges from interest rates, fuel prices, and inflation, owing to the government's continued emphasis on infrastructure construction.

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The company aims to continue to drive a demand-pull strategy and generate customer preference through innovation, service quality, and thematic brand activation and it will strive for increased realizations and cost savings in order to maintain double-digit EBITDA margins in FY24. The company focuses on improving the performance of all business verticals.