Jaguar Land Rover booked a first quarter fiscal 2022/2023 loss before tax of GBP524 million before a GBP155 million favourable exceptional pension item, parent Tata Motors said.
“The loss primarily reflects lower wholesale volume with weaker mix, as well as unfavourable inflation of GBP(161) million and currency and commodity revaluation GBP(236) million year on year,” Tata said in a statement.
“The EBIT margin was (4.4)% reflecting the lower volumes and unfavourable mix. Free cashflow was negative in the quarter GBP(769) million, primarily reflecting GBP(616) million of unfavourable working capital movements.”
As reported earlier, retail sales in Q1 FY23 were 78,825 vehicles, broadly flat compared with Q4 FY22 and down 37% compared with Q1 FY22. Revenue was GBP4.4 billion in Q1 FY23, down 7.6% from Q4 FY22, impacted by supply challenges including semiconductor shortages, slower than expected ramp up of redesigned Range Rover and Range Rover Sport production and China lockdowns.
The customer order book grew further to 200,000 vehicles.