Tata Motors gains 8% amid narrowed Q4 net loss, strong demand outlook

Shares of Tata Motors surged 8 per cent to Rs 403 on the BSE in Friday’s intra-day trade after the passenger vehicle major reported narrowing of consolidated net loss (attributable to shareholders of the company) to Rs 1,033 crore for the quarter ended March 31, 2024 (Q4FY22). It had reported consolidated net loss of Rs 7,605 crore in the year-ago period and Rs 1,516 crore in December quarter.

The company's consolidated revenue declined 11 per cent to Rs 78,439 crore as against Rs 88,628 crore in Q4FY21. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins contracted 320 bps year-on-year, while up 220 bps sequentially to 14.7 per cent.

Tata Motors said the demand remains strong despite geopolitical and inflation concerns. The supply situation is gradually improving, whereas commodity inflation is likely to remain at elevated levels. 'We expect performance to improve through the year as semiconductor supplies improve, and (we) aim to deliver strong EBIT improvement and free cash flows in FY23 to get to near net auto debt free by FY2024, the company said.