Bond Market News

Tata Motors reported a consolidated net loss of INR 9.92bn ($128mn) in the quarter ending March 2022, narrowing the net loss from INR 75.85bn ($980mn) in the previous year. The automaker posted revenues of INR 784bn ($10.1bn),11.5% lower YoY on account of lower Jaguar Land Rover (JLR) volumes. The company’s global arm JLR’s quarterly revenue declined 27% YoY to £4.76bn ($5.74bn) with its performance significantly impacted by the constraint on production and sales resulting from the global chip shortage. JLR accounted for an exceptional charge of Russia and Ukraine of about 2.5% combined of global business, with sales to Russia remaining paused. Tata Motors’ EBITDA margins saw a 320bp YoY compression in to 11.2%.  Commercial and passenger vehicle business posted strong revenue growth of 34% to INR 304.2bn ($3.93bn). Total borrowings for JLR stood at £7.6bn ($9.28bn), and Tata Motors’ domestic business borrowings stood at INR 204.9bn ($2.64bn). Net auto debt was reduced by INR 117bn ($1.51bn) to INR 487bn ($6.29bn). For the current financial year the company expects demand to remain strong despite geopolitical and inflation concerns, and aims to deliver strong improvement in EBIT and free cash flows to get to near-zero net auto debt. On this regard, JLR will implement price increases and refocus actions to recover  £1bn ($1.22bn) of cost inflation.

Tata Motors’ dollar bonds were slightly lower with its 5.875% 2025s down 0.22 points to 100.53, yielding 5.68%.

For the full story, click here