Tata Motors touches all-time high: Q1 FY24 JLR retail sales up by 29%

Tata Motors, in the exchange filing today, shared a business update regarding the Jaguar Land Rover (JLR) sales for the first quarter of FY24. JLR is the wholly owned subsidiary of Tata Motors Ltd.

JLR announced today that it achieved higher sales in the first quarter of FY24, covering the period from April to June 2023, when compared to the same period last year. This growth reflects ongoing improvements in the company’s ability to manage and overcome supply challenges, particularly those related to chips and other constraints.

According to the latest update, the wholesale figures (excluding China) for Q1 FY24 stood at 93,253 units, marking a notable increase of 30% compared to Q1 FY23.

Retail sales for the first quarter were 101,994 units (including the Chery Jaguar Land Rover China JV), up 29% compared to the same quarter a year ago. Retails were broadly flat (down 1%) compared to the prior quarter ending 31 March 2023. Compared to the prior year, retail volumes were higher in the Overseas (up 83%), North America (up 42%), China (up 40%), and UK (up 6%)regions while flat in Europe.

By model, retail sales of our three most profitable models were up significantly compared to the same quarter a year ago with Range Rover up 199%, Range Rover Sport up 42%, and Defender up 90%.

The order book remained strong with over 1,85,000 client orders at quarter end, reducing from 2,00,000 on 31 March 2023 in line with expectations, as chip and other supply constraints continue to improve.

The Range Rover, Range Rover Sport, and Defender models are particularly in high demand, accounting for a significant portion of the order book and demonstrating impressive retail sales growth compared to Q1 FY23. These models represent 76% of the total orders received.

JLR anticipates releasing comprehensive financial results for the first quarter later this month. However, based on preliminary cash balances, the company expects to report a positive free cash flow of more than 400 million Pounds during the quarter. It is transforming its business to become carbon net zero across our supply chain, products, and operations by 2039.

They have set a roadmap to reduce emissions across our own operations and value chains by 2030 through approved, science-based targets. Electrification is central to this strategy and before the end of the decade, our Range Rover, Discovery, and Defender collections will each have a pure electric model, while Jaguar will be entirely electric.

Today, Tata Motors shares concluded the day at Rs 618.45, up by 2.94% from its previous day’s closing price of Rs 600.80 on BSE. The stock crossed an all-time high of Rs 605.95 which was last registered on February 2015.

If we check the share performance of the company, the stock has generated a return of multibagger return of 467% in the last three years.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.