Jaguar Land Rover posted a pre-tax loss of GBP 524 million in the first quarter of fiscal 2022/2023, ahead of a favorable exceptional pension of GBP 155 million, parent company Tata Motors said.
“The loss mainly reflects lower wholesale volume with a weaker mix, as well as unfavorable inflation of GBP (161) million and revaluation of currencies and commodities GBP (236) million year over year,” Tata said in a statement.
“EBIT margin was (4.4)% due to lower volumes and unfavorable mix. Free cash flow was GBP(769) million negative in the quarter, mainly due to GBP(616) million of adverse working capital movements.”
As previously reported, Q1 FY23 retail sales were 78,825 vehicles, broadly flat with Q4 FY22 and down 37% compared to Q1 FY22. Sales were GBP 4.4 billion in Q1 FY23, down 7.6% from Q4 FY22, impacted by supply challenges including semiconductor shortages, a slower-than-expected ramp-up of the redesigned Range Rover and Range Rover Sport production and China lockdowns.
The customer order book grew further to 200,000 vehicles.