Tata motors conducted their analysts / Investor conference call today at 5:30pm.
" Update on press release issued yesterday on JLR Q1FY22 sales volumes and semiconductor supply. "
Here are the key takeaways 😁...
" Update on press release issued yesterday on JLR Q1FY22 sales volumes and semiconductor supply. "
Here are the key takeaways 😁...
Business Overview
- Company supply might be constrained by 50% in next period.
- This is at very lower end levels, worst is not discussed.
- But The Company is expecting that the situation might improve.
- Another issue they faced was related to Japan.
- Company supply might be constrained by 50% in next period.
- This is at very lower end levels, worst is not discussed.
- But The Company is expecting that the situation might improve.
- Another issue they faced was related to Japan.
- As the demand is too high right now, most of the players in auto industry will supply materials form same space to meet their obligations anyhow.
Financials
- Company focused to increase their retail surplus.
- Target cash of 1 billion pounds and negative EBIT margin in Q1 and Q2 is expected.
- Working Capital was not favourable in Q1 and it will be negative in Q2 as well but less then Q1.
- Company focused to increase their retail surplus.
- Target cash of 1 billion pounds and negative EBIT margin in Q1 and Q2 is expected.
- Working Capital was not favourable in Q1 and it will be negative in Q2 as well but less then Q1.
- Their inventory level is around 74000 units at present and the production level is in the range of 55000 to 56000 units.
- Last year huge amount of cash was burned for good performance. In future a proper reversal will happen but they can't time that exactly.
- Last year huge amount of cash was burned for good performance. In future a proper reversal will happen but they can't time that exactly.
- Covid has also impacted their supply to an extent as we get resources from all over the world.
- An good amount increase in volumes for us will bring a big change for them.
- This is not expected by management for now but they are working on this Direction.
- An good amount increase in volumes for us will bring a big change for them.
- This is not expected by management for now but they are working on this Direction.
Products
- Bigger driver of this Q2 cash is lower absolute wholesale value.
- As chips supply improve and working capital improve, they wish to see a better image for themselves.
- The chips supply issue is been managed to the highest percentage margin and units.
- Bigger driver of this Q2 cash is lower absolute wholesale value.
- As chips supply improve and working capital improve, they wish to see a better image for themselves.
- The chips supply issue is been managed to the highest percentage margin and units.
- Company' has record huge order banks 1,10,000 vehicles.
- This is from UK Europe and overseas which shows good retail confidence.
- No significant launches will not be delayed.
- This situation will improve with good chips supply.
- This is from UK Europe and overseas which shows good retail confidence.
- No significant launches will not be delayed.
- This situation will improve with good chips supply.
- They will do everything possible to sustain themselves. Strong steps are also taken for their supply chain security.
- 50% impact in Q2 was function of capacity like supplier of Japan and Texas.
- 50% impact in Q2 was function of capacity like supplier of Japan and Texas.
- Capex guidance is around 2.5 billion pounds. Q1 was about 600 million pounds and Q2 is expected to be same.
- Company are in talks with each and every sources to speed up their good position.
- They are also in talks with engineers to make something as well.
- Company are in talks with each and every sources to speed up their good position.
- They are also in talks with engineers to make something as well.
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