Ladies and gentlemen, good day and welcome to the Tata Motors Q4 earnings conference call. As a reminder, all participant lines will be in the listen-only mode. During the course of presentation, if any participant wishes to ask questions, they can use the chat box option appearing at the bottom of the screen to submit their questions to the speakers. All questions will be taken up at the end of the session. Please note that this conference is being recorded. I now hand the conference over to Mr. Prakash Pandey from Tata Motors. Thank you. Over to you, sir. Thank you. Good evening, everyone. Hope all of you and your family members are healthy and safe during these uncertain and unprecedented times. On behalf of Tata Motors, I warmly welcome you all for our Q4 FY 2021 results conference call. Today, we have with us Mr. Guenter Butschek, MD and CEO of Tata Motors, Mr. Thierry Bolloré, CEO of Jaguar Land Rover, Mr. P.B. Balaji, Group CFO, Tata Motors, Mr. Adrian Mardell, CFO, Jaguar Land Rover, Mr. Girish Wagh, President, Commercial Vehicle Business, Mr. Shailesh Chandra, President, Passenger Vehicle and Electric Vehicle Business, and my other colleagues from the investor relations teams. Like always, we will start the session with a quick overview of the financial and business performance from the management, and then followed by Q&A. Over to you, Balaji. Thank you. Thanks, Prakash. First, a warm welcome to all of you. Thanks for taking the time. As Prakash said earlier, I hope all of you are safe and sound. The presentation has already been uploaded into the investor portal, therefore, I'm presuming all of you had a chance to take a look at it and also have it in front of you. We'll refer to the page numbers and move forward with speed. Can we have the next slide, please? This is a safe harbor statement. Move to the next one. Yeah. An intense period of product actions as well as company actions that you saw in Jaguar Land Rover. Defender, of course, we're going to talk a lot about Defender today. Winning the World Car Design of the Year. Now almost 12 out of 13 are based around electrified. You were there when the Reimagine strategy and Refocus transformation was announced, and we talk about that later as well. We'll be concluding c harge in this quarter. It has generated GBP 6 billion of lifetime savings, one of the most successful projects in the automotive world. I am very happy with that. Next slide, please. In Tata Motors, of course, we did see significant product interventions, post BS6. At this point in time, what is really happening is customers starting to experience the product and really giving us excellent feedback, which is now reflected in our market share, particularly in M&HCV and ILCV. Tata Safari, the legend was reborn. Of course, its strong response into the market. Tiago has been a standout performer, which Shailesh is going to talk about even more. The cost-saving target, we had indicated INR 6,000 crore for the year. We ended up at INR 9,300 crore. A strong performance there as well. The promoters have completed their fundings. The remaining outstanding warrants have been exercised. Next slide. From a performance perspective for the quarter, a strong all-around performance despite the pandemic, if you look at the full year. Full-year EBITDA of almost INR 30,000 crore. If I look at closer home into Q4, the EBITDA numbers that you see of 7.3% is the highest rate we have seen in many quarters. We ended the year with a strong cash flow for the quarter as well as for the year being a positive free cash flow. Overall, EBITDA margins have picked up. If you look at the full-year number, EBITDA has improved despite a decline in revenue or volume increase, which tells you that the business is getting intrinsically more stronger. The implication of a strong business, what does it do when revenues come through, is seen in Q4. That's how we like to see the business today. Move forward. Some of the numbers are there for you to see. Call out the net automotive debt. We have called out the deleverage plan when we announced it in the AGM. Happy to report that for the current year, we are lower than what we were at closing date of last year, and every quarter we've been reducing our net debt level. That is something which we are quite happy about. Next slide. One of the three things which are a bit different to the rest of the flow, which is a traditional P&L analysis. First is JLR, where we called out the Reimagine-led changes that we are doing to our strategy, resulting in a one-time non-cash write-down of GBP 0.95 billion and a restructuring cost of about GBP 0.6 billion. This will impact us in FY 2022, but even then we'll deliver a breakeven cash flow. This is an important pivot that we've done to the business, and therefore, these write-downs that we have taken will actually help us from a strategy perspective to go fully into the electrification mode. Thierry and Adrian are going to talk more about it. This will also give us a credit going forward in terms of lower D&A charge of GBP 150 million per annum, and also the headcount savings, we are looking at about 2,000 odd headcount. That will result in savings of close to about GBP 1,100 million per annum. Sorry. Despite these write-downs, the network continues to be strong at GBP 5.3 billion. That is the first one of the exception items. In the case of TML PV, this is sweet news, where the strong performance of the business is a significant improvement, even well ahead of our own internal expectations. Outlook remaining strong, thanks to the pandemic and our performance both together. We have reversed the impairment that we had taken the same period last year of INR 1,200 crore. We also had an onerous contract provision for volume from one of our vendors. That has also been reversed, and therefore, this business is now well and truly performing to the extent that we want, and of course, more to be achieved as well. PV subsidiarization, we had the shareholders meeting as well as the secured creditors meeting and got approval for that. We are awaiting the final NCLT approval, which is now scheduled on June 14th, and we are hoping to get the approval from there and promoters I've already talked about. With this, let me hand it over to Adrian to quickly run through the key highlights of JLR performance. Adrian, over to you. Many thanks, Balaji. Good afternoon, evening to you all on the call. Same format for us. Exactly as Balaji said, our first half was the weak half, and we had a strong second half performance, particularly in Q4. Can everybody hear me? Particularly in Q4. Thank you. The 7.5% you see there, EBIT in Q4, was mostly and overwhelmingly underlying performance. Really pleased with that. You see the PBT GBP 500 million and the big free cash flow as well, GBP 729 million. Full-year results on the right, you can see dramatic improvement to the previous year, even though FY 2020 was impacted partially in quarter four, if you recall. Next slide, please. These are the headlines below that. We'll get into revenue details later in the presentation. Balaji has talked about the exceptional item, we'll go through the walks on cash flow as we normally do. Next slide, please. Only points I want to make on exceptionals, because I don't want to repeat what Balaji said was, look, our assessment at the end of the year was very close to the preliminary assessment we made on February the 26th, GBP 1.5 billion. Just to remind you, those products, MLA-Mid, did not fit into the Reimagine strategy, and they would not lead product competition. We're all about being the best of the best, not just competing. That's why we took the really difficult and emotional decision to cancel those programs. We are still working through the restructuring costs beyond the headcount, 2,000 people. That's mostly about getting the right positions and the right people into the organization with the right skill sets. Less management grades, more people with specialist skills, which is fundamental to success in this environment. Next slide, please. A busy one, we wanted to show you several flavors of the retail data. Quarter four at the top, full year below. Look, you can see the highlights and study it in your own time, a dramatic quarter-over-quarter improvement on China, in part because Q4 FY 2020, of course, COVID hit China first and therefore was impacted negatively. Nice year-over-year performance in North America as well, particularly in Q4. The other regions are starting to build back. They were limited impact, of course, last year, they are starting now to build back with a huge order demand we have at this point in time. Almost 100,000 customers waiting to drive our vehicles. A very, very healthy order bank going into quarter one. Next slide, please. This is it by family. We talk a lot about health of sale, quality of sale, we're playing this back by sales family. Range Rovers versus last year were a little bit higher. Obviously, China is a good piece of that. Take a look at the Defender data. Balaji said we would talk Defender. 17,000 units in Q4, our highest quarter so far. We've talked to you several times about 5,000 units a month. We have surpassed that already. Other data sets for you to focus on this page, 62% of our vehicles were electrified in one form or the other, pure BEV, PHEV to MHEV. The pure ICE vehicle content is reducing quarter by quarter, and that trend will continue. Particularly now we brought out 21 modular PHEV vehicles that will continue going forward. More of our vehicles will be electrified going forward. Next slide, please. Okay, Defender. Look, this is really dramatic. I talked about 100,000 orders overall for our families of cars. More than 22,000 orders now for the Defender family. You see the uptick here towards the right-hand side as our Defender 90 came on stream at the end of last year. The dotted line there, that is the retail data, 7,000 cars in March. We talked about 5,000 a month. We need to now start talking about 6,000-7,000 units a month as that supply comes on. World Car Design of the Year, you'll have seen that. Last one we got announced was Women's World Car of the Year. This is definitely a vehicle that actually gets appeal across all the spectrums and all the genders. It is a brilliant indication of what this organization can and does do. This is the best of the best, and that's what we aspire for. Next slide, please. Okay, you talk to us a lot about shares, we've added this page at this point. Few things to draw out. Our share is growing quarter-over-quarter, particularly growing stronger in those families which we are focusing most on, Range Rovers and Defender. That health of sale, quality of sale. We're not competing on total units, we're competing on overall profitability, this is shown, I think, perfectly by this page. Overall, though, you can see in total, our share has grown from 4.4% at the start of the fiscal year to 6% at the end of the fiscal year. Again, that's mostly around that Defender family and the growth you there see in the Range Rover. Next slide, please. Our traditional walks on profitability. I'm just going to derive a few themes here. This one is quarter four. Last year, of course, we recorded a big loss. Some of that was as a result of those COVID provisions, variable marketing provisions we put in place as the second-hand vehicle market collapsed at the end of that year. This year, the GBP 534 million. Things to draw out. We talk about health of sale, quality of sale. You can see a huge increase in mix actually there within the volume and mix, almost GBP 200 million within the quarter. Dramatic data on variable marketing. The other thing about health of sale is, of course, you cannot oversupply to the marketplace. We haven't been oversupplying, and our variable marketing is substantially improved because of that. Almost half of that last year number was as a result of the reserves we put in place. I've taught you several times about VME less than 7%. Our underlying number dropped to 4.9% in Q4 with the headline number at 4.4%, eliminating reserve adjustments. The other one I wanted to talk about and call out is warranty. Again, we taught you about this almost every quarter. We've been very transparent and very clear about what our intention is and what's likely to happen. You'll see it in the data here, right? 2020 model year vehicles are substantially better than previous model years. We said they'd mature at the end of Q3 and into Q4, and we said our warranty as a proportion of growth vehicle revenue would drop below 4% towards 3.5%, slightly under that 3.4%. I won't repeat all the other pieces, but there was a big favorable year-on-year on exchange. GBP depreciated last year, which meant our euro-denominated liabilities and our USD and euro-denominated debt was more expensive in GBP. That gave us bad news last year. The other way, GBP's appreciated post-Brexit, again, as we said it would. That's given us that optical improvement on revaluation. Great work by the treasury team in terms of the hedging levels we've had, both on commodities and on currencies, which of course, have helped as well. Next slide, please. Full year performance. I derive different things on this one. Volume, significantly lower year-over-year, 120,000 units, down GBP 1.2 billion. Of course, that mix improvement has partially offset that. You can see the full year numbers for VME and for warranty. Wanted to draw out the engineering D&A here, because we talk about this one a lot as well. We did say to you the capitalized engineering would start to fall as our programs mature. You can see here, really for the first time, the amount of capitalization is lower than our amount of amortization. That means we're de-supplementing the balance sheet on these programs. You will see in the back of data, substantially less capitalization, particularly over these last few quarters versus previous years. That trend will continue, we believe. The full year exchange, which are the full year evaluation of the items I mentioned earlier on revaluation on hedges and on commodities. Next slide, please. Okay, cash. Look at the middle box. Again, I've been asking you to look at the middle box for the last several quarters. You can see how dramatic our underlying cash position is. Almost GBP 1 billion generated. Investment now within that two and a half billion range, more than GBP 400 million in the quarter. We did reverse our working capital losses of quarter three, quarter one as we went through the year. That was behind the GBP 700 million cash flow in the quarter. Next slide, please. Investment, GBP 2.5 billion was the guidance. We said GBP 600 million a quarter broadly. We came in a bit lower than that. Our guidance for next year is GBP 2.5 billion or so. I think it's reasonable for you to assume it'll be ±GBP 100 million over the next years, depending on where those investments finally get deployed and crystallized. We were lower than the target for this year. GBP 2.5 billion stays in place going forward. Next slide. Project Charge. As you said, we've now finished the program. We did exactly again, what we committed to do. This is becoming a theme from us. We make commitments and we deliver on those commitments. We said in April we would generate GBP 2.5 billion this year, and that would take the program up to GBP 6 billion. We did, and it has. In summary for the program, over two and half years, we took GBP 1 billion out of inventory. We took almost GBP 3 billion out of investment, laterally measured on a year-over-year basis, not the notional start point, which we started off with. We took GBP 2.1 billion out of several areas of cost, strategic costs, the Sapphire program, all the things we talked to you about previously. Again, we did what we said we were going to do. The program's closed. The power of the program lives on through Refocus, which has substantially expanded the scope of the program as well. More in later slides. Next slide, please. I introduced this slide to you at the Investor Day. I won't repeat it all like I did then, but this is quite dramatic what the program's done. We've effectively reset the investment and the structural cost base eight years now. Go to the first column, break-even volume is 425,000 units in FY 2014. We wholesale at 471, significantly cash generative. We invested and we brought more structure in and more people in right through to the start of the Charge program in FY 2019. Our break-even cash position was 600,000 units at that point. Even though in that year we had a wholesale number, the highest in our history, we lost substantial cash. Charge started to bring that down pre-COVID to 500,000. Obviously, had a dramatic year in the year of COVID, as you would expect. Artificially low, including some furlough money there. The big point here is we now know we've restructured and we've rebalanced to 400,000 units. We've reset this organization eight years, and that's before the power of the Reimagine and the Refocus programs kick in fully. Next slide. Saying it a different way. First three quarters before the program, GBP 2.7 billion cash loss. Last three quarters of the program, GBP 1.7 billion cash gain. Since Project Charge started, net cash gain is almost GBP 8 billion. That's quite a dramatic turnaround, as Balaji has mentioned. Next slide. Those are the core finance slides. I'll quickly go on to the business update slides. This is the same as last time. Our electrified portfolio is now in the marketplace. Next slide. Okay, Reimagine strategy. Look, we took you through in almost two hours worth of detail on February the 26th on Reimagine. I'm literally going to just hit a few highlights. Reimagine's there fundamentally to fix the problems we've designed within this organization. The first thing, clearly, that comes out from Reimagine is we need to make Jaguar great again. The power of that brand deserves to be great, and that's our intention to actually do that. We'll be a copy of nothing. Upgrading to modern luxury. An intent repositioning of this brand with luxury materials as well as obviously a luxury external design. All of that is in process. We made a lot of progress over the last few months. We'll bring those details to you going forward. All-BEV Jaguar will be from 2025, let me remind you, and Land Rover will have its first full All-BEV from 2024 onwards. Our estimation is about 20% of our sales will be All-BEV by 2026, with a commitment for tailpipe zero by 2036. That's the intention and the commitments we made on February 26th. They will not change going forward. Next slide, please. How are we going to do it? Obviously, the first thing we're going to do is consolidate our architectures, six architectures down to three, and most importantly, two are Land Rover, one Jaguar. That will enable us to design those brand personalities as specific to those two brands. No compromise here. No compromise. The freedom of the design and the engineering authority discreetly within those brands. That's something that other organizations and other OEMs don't do as well as we can do. This is a competitive advantage for us, and we are not going to give up that competitive advantage. Increased collaboration, particularly with our group, with Tata. Announcements will be made on that forthcoming. Not today, but forthcoming. Very excited about the speed of consolidation and synergy within the broader empire, and also working with external people collaborating to get the best. We want to be the best of the best, therefore we have to work with the best to enable and to actually do that. Please don't underestimate how many of those companies want to work with us. We are a brilliant profile company for them to wish to work for as well. We're very excited about the collaborations we will be able to make in the foreseeable future. Again, when we're ready to announce those, you will hear about it at that point in time. We will also take on the other challenges we've created for ourselves. Excess capacity. This is our production facilities. Obviously, we announced on February the 26th our intention to consolidate our nameplate within facilities and also to repurpose the Castle Bromwich site after we finish building the current range of Jaguar vehicles there. That's what we intend to do under that modern luxury by design banner. That's what you should judge us by. Next slide, please. Okay. Mechanism. How are we going to do it? That's the Refocus program. Exactly as we told you before, six pillars, three enablers across all of those pillars. Next slide. Let me draw out some of it, because obviously each time we talk to you, we need to build on it a little bit. I'm going to talk about one of the pillars that wasn't a focus of Charge. This is pillar two, this is program delivery, and this is where we're really tying in the item seven enabler, agile working. We've introduced an agile specialist. We're bringing on agile people to add to our workforce. We're rolling this out, particularly within the engineering fraternity. We've already started with hundreds of teams, and we will have thousands of people working in those scrums, those sprints, empowered to fix the problems that we have over the course of the next six to nine months. What do we expect? We expect to significantly speed up our time to market. You can see there that we're actually committing to a 40% improvement, and we also expect to improve customer satisfaction. Why? The input into the engineers and designers are coming from several different sources into the individual groups, obviously the engagement of those workforce and the speeding up will actually improve the quality of the engineered solution. As a result of which, we will spend less. Less time means less. Less rework means less. Less iteration means less spend. We expect a 30% reduction in spend, which of course, will also help deliver those investment targets. Th e center one, customer and market performance. We talked to you in some detail about this two years ago, particularly to the U.S. market, we've significantly scaled this now. Under that, in the digital side of Refocus, where we brought our analytics team and our robotics teams together with data solutions to the problems we have in the marketplace. We've also scaled our intention here. Two years ago, I talked about national sales company work. This is working directly with the dealers. You can see there, again, the commitments that we're making through that analytic solutions and making sure we're providing the right cars to the right market at the right time with the right specifications. They sell quicker, and there's less marketing support around it. We've already proven this out. This is a scaling of those ideas. Very excited about pillar five. Everything that isn't embedded elsewhere from Charge goes into pillar nine. The 2,000 people coming out of the organization was the first decision we made, but we'll continue our work, obviously, in terms of real estate consolidation post-COVID. A lot of the other side of in digital, the robotics team is starting to help our teams become more efficient, taking administrative roles out, replacing with robots. Very excited about the scaling up of the program in terms of Refocus. A fast start here. We've got the momentum of all the whole Project Charge program into Refocus, which is why we're committing to a GBP 1 billion value in FY 2022 off this program. Next slide. Still problems out there, of course. None of us will rest until the planet's vaccinated against COVID. We know that. The speed to electrification is enhancing. We need to make sure that we speed up as well. Pillar two, agile is part of that. Of course, there are supply concerns, particularly as a result of the semiconductor post-COVID and also the fire in Japan, which other OEMs have talked to you about. We're not immune to them also. I didn't want to talk about the first half of FY 2022. We'll cover that in terms of our Q&A. From a Q4 perspective, we managed these challenges quite excellently within our results, as you would have seen, and our intention is to manage them excellently going forward as well. Next slide. Next slide, please. Okay, outlook. Very similar to what we told you on February the 26th or so. Revenue will be bigger this year than last year, so in FY 2022, and we're already seeing that in the first quarter. Of course, despite the headwinds, the challenges, the supply constraints, we're reconfirming 4% or better EBIT margin for this year. We're reconfirming investment at GBP 2.5 billion, and we're also reconfirming cash positive or better than break even, as it's referenced here, despite the monies we'll need to pay on restructuring the GBP 500 and some million. All of that will improve through FY 2024 because our underlying business is stronger than FY 2022. It's those challenges which will hold us back. The momentum of our transformation program will clearly build over the next several quarters. We've got some superb product offerings, MLA High, Range Rover, Range Rover Sport, Defender 130 coming at us between those two periods as well. We're very confident of being able to build not only our EBIT, but reduce and eliminate our debt. I'll remind you, in FY 2026, our guidance EBIT margin is 10% or better. Not up to 10%, 10% or better. That's what we intend to do. I think I'm back to you, Balaji. Thanks, Adrian. Next slide, please. Talking about Tata Motors standalone, numbers you have already seen. A call-out I would make here is the spread between EBITDA and EBIT starting to narrow as the revenues start kicking up. On an overall year, despite the pandemic, it grew 2%, the revenue is up 7%. EBITDA margin improving by almost 80 basis over last year. That's a good place to be. The profit before tax, before exceptional items, that is, of course, we talked about the PV impairment reversal in the exceptional item. Despite that, this quarter was breakeven PBT. Full year, of course, impacted by the first quarter and the second quarter that we saw. Free cash flow, of course, strong for year, third quarter in a row, full year also ended on a positive basis as we had guided earlier. Next slide, please. Same highlights. Maybe I'll just pick up one or two items here. I think the question on CV, if I look at the recovery, starting to move from M&HCV and ILCV, so those things are starting to fare well with higher demand from infra. We're also seeing percentage of M&HCV in our overall portfolio also starting to increase. PV, of course, this is the highest sales that we saw in the last 34 quarters doing extremely well. EV growing at 215%, so that's a whopping growth that we are seeing on the EV side. EBITDA is the highest in the last eight quarters, and CV EBITDA within touching distance of the double digit that we talked about in the guidance. PV EBITDA at 4.9%, well ahead of the breakeven that we indicated and absolute EBITDA highest in the last 10 years. Overall, domestic business has come through well across all the lines. Next slide, please. The call here, I think every line item with volume mix realization starting to go well. The one that's really applying the ointment here is variable cost coming from inflation on commodities that we are seeing. That is, of course, going to be an issue as we go into Q1 as well. That's coupled with lockdowns. We'll talk a little bit towards the end on that front. Fixed cost controls continue to be tight, and that's the reason you see a benefit coming as volume is picking up. Overall PBT margin of 3% for the quarter is something that we are quite satisfied with given the conditions. Next slide. Similar to JLR, watch the central box, where I think cash profit after tax well ahead of investments and even on a full year basis. The decision to actually cut back on investments proven right. At the same time, we are not being pedantic about it. We did dial up the investments, particularly in PV, as we started seeing growth come through. As far as the working capital changes are concerned, most of it from a days perspective, we are reducing our inventory days, we are reducing our debtor days, and we are reducing our creditor days. A combination of that, despite that, we're starting to see working capital negative continue, and as growth is coming through, you're seeing this number really spew cash. A hygiene point here. As Q1 with the kind of lockdowns that we are seeing, this will unravel for a while until growth comes back again. That's just the nature of the game that we are currently on to. Next slide. Slide. Investments, you've already seen it. I don't want to spend more time on this other than to say that we are managing our investing quite prudently in current conditions focused on products and technology. Next one. This is an INR 6,000 crore target that we had given ourselves to deliver, and again that we have delivered INR 9,300 crore. You will notice on the investment line, we did not meet the target because we diverted that money for unlocking growth, which is what you're seeing on the PV side. On the working capital side, of course, a good number there. Overall market share. That's fine. You don't go and change. Go back. Overall market shares have been sequentially improving as the year progressed, and we did end the quarter at almost 47% share, which on a YTD basis lands up at 42.4%. Draw your attention to the M&HCV's market share improvement over the last four years. We've been consistently increasing that share and almost 400 basis points added over the last few years. ILCV also continuing to increase its market share momentum as we build forward. Real call-out will be on small commercial vehicles, where I think they have a task on hand. We did end the quarter strong in terms of pickup in numbers. Sequentially, it has been improving, but clearly that is a number that is not acceptable to us, and we need to ensure that we work on that and deliver against it. But, I wouldn't speak too much about where the salience is completely required, so there's very little to talk about. This overall number actually got impacted by the small commercial vehicle salience disproportionately increasing in the first half of the year, and therefore, that is what you're seeing as numbers. No excuses. It is just the nature of the game, and therefore, we need to do a better job of picking up the small commercial vehicle share, which we are committed to. Next one. Financials. Commercial vehicles. Clearly, the revenue number growing at 90% for the quarter. Even on a sequential basis, the number is starting to increase, which is good news. EBITDA at 9.1% we talked about, and the gap between EBITDA and [RevEx] starting to narrow fast. Overall on a full year basis, EBITDA was breakeven despite the mayhem that was there in the first half of the year, as you see the numbers there. Let me hand it over to Girish in terms of how he sees the current quarter and what happened in the last quarter. Girish, over to you. Next slide, please. Yeah, thanks, Balaji. Quickly summarize the key points in last quarter. I think most of the end-use sectors showed a strong recovery. Of course, prior to the onset of the second wave of COVID, I think our BS6 product superiority and value-added services continued to be well received by the customers, and as a result, not only did we see sequential market share growth, but also our net promoter score increased for a third year consecutively and has now moved from 65 to 68, so at a high level and continues to grow. We also did well in the non-vehicle business. We were able to improve our spare parts penetration by almost 500 basis points during the year, which also therefore increased its contribution to the revenue. We also increased the penetration of Fleet Edge, our connected truck platform, and I think we have now a penetration of upwards of 90% in medium and heavy trucks. Those were the highlights, and of course, we were able to reduce the EBIT breakeven by 25% during the year gone by. Coming to the current quarter, of course, I think we are now challenged with the second wave of COVID. There we are focusing on ensuring the dealer health. We have provided support to the dealers through various initiatives, especially in the area of liquidity, so ensuring that their claims are settled. We are also giving, wherever required, support on interest on the stock to provide a P&L support. We are supplying vehicles to those geographies and segments where the demand is not yet impacted much and continue to monitor our pipeline on a daily basis. In terms of customer connect, that continues to be on a digital basis completely now. All virtual engagement with the customers across all the segments. We have also formulated a new set of standard operating procedures and communicated those to all the channel partners. In terms of demand fulfillment, we are aligning our production to retail. Whatever has been the retail, and one has seen a drop in the retail, and if you see some of the highlights, I think one has seen a drop in diesel consumption, one has seen a drop in the FASTags. One has also seen a drop in the Vahan registration of the vehicles. Overall, I think the market has dipped, and we have immediately aligned our production to retail starting from the month of April second fortnight, and we are doing so even in this month. Even this month, I think the production is lower than that of April. We are ensuring that we are able to break the chain effectively in all the plants by having sufficient shutdowns. Even on the days we are working, we are having just 50% of the manpower. We are, of course, looking at fulfilling the spare parts and international business orders, which continue to be good. Of course, in some of our international markets also, there have been COVID-driven lockdowns. We started maintaining strategic inventory of critical parts, I mean especially electronic items, which have been in shortfall throughout the last year, and therefore, looking at those. We also have formed a task force which is monitoring the vendors, vendor site operation and health, and also their operational requirements. In terms of cost reduction and cash preservation, we carried forward the learnings from the business continuity plan that we had last year. Direct material cost reductions are being expedited and pulled towards Q1. We have deferred CapEx as regards our earlier budget or plan, we have deferred by almost 30%. All the fixed expense reduction that we had done during the previous year has been put into action again so that we are able to sustain all the benefits. The capital allocation has been revised for products with a large part of it now going for BS6 Phase II programs. I think that's what we have done, and we align ourselves continuously with the changing market environment through the business agility plan. Back to you, Balaji. Thanks a lot, Girish. Moving on to passenger vehicles, next slide, please. Two callouts here. Draw your attention to the growth numbers. Industry declined 2%. We grew by 69% in Tata Motors PV, and the EV business within that grew 218%. Significant shift in numbers there. Market share of 8.2 we talked about. Also, draw your attention to the penetration of EVs in our portfolio, which was 0.2%, is now up to 2%, and likely to increase further as we go forward. Therefore, we do see significant change happening in the consumer segment, and we are very clear at Tata Motors we will lead the PV disruption as far as India is concerned. Next slide, please. Financials. Delighted to see the EBITDA numbers consistently improving in the PV business as volumes are starting to come through, mix is improving, and EBIT margins starting to improve, rather, as operating leverage kicks in. We believe this trend is now fundamental, coming from the fact that the consumer is clearly looking to break free, this is a shift towards personal mobility that we are seeing. Within that, our new portfolio is really firing on all cylinders. The consistency in growth that you're seeing is likely to continue. What happening in Q1 this year is a different discussion, which we'll come to in a short while. I'll ask Shailesh to talk about it. Shailesh, over to you. Thank you, Balaji. Second wave of COVID has, of course, adversely impacted both demand and supply side. The good thing for PV business is that we started the quarter with a very low inventory and a very strong booking pipeline for ourselves. Therefore, while quarter one looks a bit on a decline, we have therefore articulated and operationalized the business agility plan to navigate effectively in this uncertain period. Actions have been developed in three areas, which is on demand creation, fulfillment, as well as profitability. On demand creation, we've seen that because of progressive lockdown in the country since middle of April, it has really impacted the demand side. In April, the retail and bookings dropped in the range of nearly 40%-45%, in May, it is trending at a much steeper drop, with only, I would say, less than 20% of showrooms which are operational. Demand is expected to be significantly subdued in the quarter one. As far as actions are concerned on the demand creation side, we are closely tracking the regional and segmental changes, if any, on the demand side and keeping our offtake and production completely aligned to that. We are using digital, given the lockdown situation. This is what had helped us last year also. Leveraging it through platforms like Click to Drive and hyper local marketing initiatives to ensure that even in the lockdown period, we are able to keep getting the flow of the bookings. Since we have less than 10 days of inventory at the start of the quarter, and this was due to demand being more than our supply rate. Therefore, we are using this month to increase the stock in the channel and bring down the waiting period for our customers, which were pretty high, and therefore this is an opportunity for us. Sorry. On the demand fulfillment side, the supply side got impacted primarily due to the lockdown in all the major auto clusters, especially Maharashtra, I would say, latest one are Nashik and Kolhapur cluster, which has badly got impacted. Most of the suppliers are operating at 50% manpower or less. Also semiconductor supply has further iterated, is what we have seen in this quarter. While it was a concern in Q4 also, but this quarter it has further iterated and a matter of concern for the coming months. Therefore, we are trying to maximize production to fulfill the demand and build strategic inventory. We are continuing with the production in all our three plants. We had taken shutdown for the first four, five days, mainly aimed at enhancing our capacity further for supporting the growth that we have planned for this year, and also some preventive maintenance actions. On the profitability front, it's going to be impacted by the lower operating leverage and the commodity inflation that we have seen. Therefore, we have initiated tight controls on fixed costs and also accelerated the structural cost reduction effort, which is now pretty much an institutionalized and ongoing initiative for us. We have also taken price increase, which is in line with the industry, but we are the only players who have also given the price protection to our customers. That basically has helped us in avoiding any cancellations to the strong booking pipeline that we have. That's from my side, Balaji, back to you. Thanks, Shailesh. Next slide, please. Quick peek into Tata Motors Finance. They ended the year pretty strong. Market share 33%, PBT of INR 266 crore significantly better than last year. Return on equity, which is the metric that they are going after, of 9.2%. GNPA is also below five. NPAs below four. The key one is the cost-to-income ratio is in tightly controlled. At the same time, focus on collections, where we hit at almost 105% in March. I really would love to draw your attention to the last two lines out there, where next few months we do expect to see a challenge. This time it is different because it's not just about the transportation business that is getting affected. The collection infrastructure in terms of people who are going out there and collecting, we have almost 900 people who have been impacted by COVID, who are people who are feet on street. Unfortunately, we lost 6% in Tata Motors Finance, and therefore, we are wanting to be very careful with respect to our people, and that will definitely have impact on collection efficiencies. We have already seen it come down quite significantly to almost 80% level last month. Therefore, it's not an easy time out there in the field. We are working closely with our teams, our customers, our people to ensure that we alleviate the stress. It is fair to expect that Q1 is going to be a significant pain, and we are representing to all the powers that be to find ways to alleviate the stress. This is going to be a critical quarter for all of us from that perspective. Last slide. Outlook, I think you can see it, Q1 FY 2022 will be adversely impacted by lockdowns. You heard Adrian talk, you've heard Girish, Shailesh, and myself talk. Clearly impacted by lockdowns, semiconductor shortage. We have a cup of woes that's quite full. A strong end to the year is something that we were very happy with. Of course, Q1, we need to deal with the stress. We will come so strong because the fundamentals of the business, as you have seen, are very strong. Therefore, this makes us even more resilient in terms of performance, and we will get there. We are not changing any of our plans in JLR or TML because what we need now is agility, and therefore, that is what we are focused on. With this, let me stop here and hand it back to you guys for questions that you may have. Thank you, Balaji. We will now start the Q&A session. Okay. Do you want to quickly explain the process? Yeah, sure, Balaji. All the participants on the webcast can use the chat box option appearing at the bottom of their screen to submit their questions to the speakers. We'll wait for a moment while the queue assembles. Okay, let's get started. My first question is from Ruchit Mehta, SBI Mutual Fund. Adrian, this is for you. For JLR, the Q4 implied ASP seems to be lower by GBP 5,000 quarter- on- quarter. Could you walk us through the cause for the same? Yeah. Okay. Let me go back to a couple of the points I've made in previous presentations. Different markets have different peak periods at different times of the year. Q3, actually, that's the peak selling period for China. Therefore, there was a disproportionate value within our China business in Q3. Don't forget, that means SUV4 and SUV5 vehicles. The highest transacting price vehicles that we sell. Q4 is different. Q4 has a peak selling period in the U.K. and not such a peak selling period in China. Of course, U.K. is about SUV2 and SUV3 vehicles. Lower transacting prices, lower gross vehicle revenue and lower margins as well. You really need to start to look and plot where our peak sales periods are for our peak regions, which will give you a heads-up that our average selling price in Q3, unless there is something extreme happening, will always be higher than Q4. Thank you. Thanks, Adrian. Second is from Prateek Poddar. I'll take this question. Tata Motors has been very clear that the equity fundraise would be the last resort, despite such a good performance on both JLR and TML standalone. What is the rationale of thinking of a fundraise? Prateek, you're absolutely right. It remains the last option. There's no change in that particular front. Also, just a reason to add there, the board has deferred this decision to a subsequent board meeting. The reason we had an AGM coming up, from a flexibility perspective, we want to keep all the options open. That is why we have not been clear in terms of what are the instruments that we will raise and how much we will raise. That is something that was part of the discussions today. Therefore, the board has decided we'll defer it to a later point in time, given the performance that we have right here. At the same time, we shouldn't forget that we are in the midst of COVID. There are a fair number of challenges that we have outlined. The reason we want to keep our options open was this, because it's an AGM coming up, and therefore, those enabling resolutions, if you notice them, if you read the notice carefully, we have specifically put it as an enabling resolution. That then gives us a good one year of not having to go back to the shareholders. That is, of course, now subsequently from the board, we have decided to defer it. Therefore, that's the background thinking to it. Next question is from Yogesh Aggarwal, HSBC. JLR volume growth guidance of better than FY 2021 seems very conservative considering the base effect in FY 2021. Can you please provide more flavor? Would it be a 20% plus kind of a growth? You're absolutely right. It is very conservative. The answer is yes, it will be better than 20% higher than last year. Okay. Kapil Singh, Nomura. On JLR guidance of FY 2022 forecast, the company has been reporting JLR EBIT margin of around 7% for the last two quarters. Plus, you will get the benefit of nearly 100 basis points from restructuring costs taken in FY 2021. Why is the guidance so low at 4% plus EBIT margin? What are the key factors that can take the margins down to 4%? Was there any reversal in residual values for JLR? Maybe that's a separate question. Maybe we'll answer this one first, Adrian, then the next, please. Yeah, sure. Yeah. Let me take you back to half two FY 2021 to answer, please. Let me remind you what we've told you so far. We told you Q4 underlying is about 7%. Q4 is always our best quarter. We know that. Our volumes were 123,000 units. It's closer to an indicator of a normal quarter, but Q4 is normally stronger. Q3, don't forget what I told you, we were 6.7%, but we had a lot of reversals of residual values in VME in Q3. The result of that, our underlying was a couple of points lower. I think it's reasonable for you to assume, based off what we've already told you, that our second half performance was close to about 6%. Why 4%+? Well, a number of factors coming going forward. We don't yet know the level and the scale of impact from the semiconductor challenges that the whole industry faces. Other OEMs have told you specific numbers. We're not going to do that. The reason why we're not going to do that is because we haven't given up on it. We are working tirelessly to enhance our position every day, every week, and every month. We don't actually know where we'll end up from a volume perspective in quarter one. What I do know is we're optimizing everything we possibly can. Last year in quarter one, we lost 13.5% EBIT margin. We could be EBIT loss in this quarter as well, but it'd be very, very small if we are. It will impact the full year. Here's a key point here. Q1 will impact the full year. However, depending on the speed and the bounce of the industry response in the semiconductor build, I don't know how much of that we will then get back in Q2, Q3, and Q4. What I do know is, if we can overcome those challenges, we will be stronger than the 4%. That's why we said higher. It's speed of recovery for those challenges and whether we can catch back units are the two unknowns today. I really don't want to mislead you. I've given you a baseline of 4% or better. Depending on how the industry can respond to semiconductors, the better will get bigger. Balaji. Yeah, thanks, Adrian. Second question for you again. Was there any reversal in residual values for JLR in U.S.A. in Q4? Do you see more coming through in Q1? We did reverse some of the residual values in the U.S.A. We never made all of those reversals actually within Q4, no more to come. We did book some reserves in Germany. The net reversal in Q4 was very low, about 0.2%. That's all. Most of it is done, and we think also with the changes we made in Germany, we've contained and trapped those losses as well. Overwhelmingly, we do not expect VME to be driven by residual value improvements reductions going forward. What we do expect in this lean market of undersupply and significant demand is our underlying VME to be better than we've actually previously communicated. That was 6% or lower. We do expect that to continue, particularly with supply shortages. It'll be closer to 5% over the first half is my estimate. Yeah, thanks. Again, question back to you again, this from Satyam Thakur, Credit Suisse. Could you help understand the moving parts behind the gross margins of JLR sequentially, quarter-on-quarter, fourth quarter over the third quarter? How much was the impact of higher raw material costs and what all went into offsetting that, if you could quantify, please? I'd refer to the response to the first question, actually. The overwhelming issue is the mix of the vehicles we sell, SUV4, SUV5, Q3, SUV2, SUV3, quarter four. Even though volume would have increased, we would naturally expect gross margin quarter four over quarter three for those reasons, mix of vehicles and regional strength. We know that commodity prices are increasing. It is not yet having a significant impact on our numbers, on our margins. In fact, Q4, from an overall material cost perspective, was lower as a proportion of gross vehicle revenue than quarter three. Limited to date. We have a hedging strategy in place. It will increasingly hit as we go forward and those hedges roll off over the course of the next 6- 12 months. If it becomes a particular impact on the data, we'll call it out at that point in time, not in the data to date. Thank you. The next one is from Jinesh Gandhi, Motilal Oswal. Questions for India, if I could ask. Can you discuss your fundraising plans with what's deferred, whether including equity? Considering the sustained sharp improvement in both JLR and India, why do we need any fundraising? That's the first question. I think Jinesh, I've answered that. It was an enabling provision that we took just to be safe in this environment, COVID wave two. There's too many things coming at us, so we want to be sure that we have the options with us. It was an enabling provision, and at this point in the board has deferred it. Obviously, the strong performance has helped there, and we will revisit it if required. That's the way we're looking at it. Of the INR 9,300 crore cash savings, how much was the actual cost savings? We referred to it in slide 37, Jinesh. Cost and profits of INR 2,200 crore, all of it. How much of this is sustainable? We are seeing it as sustainable because take Girish's mention on breakeven reduction. We're down by almost 25% for the commercial vehicles. Passenger Vehicles EBITDA improvement also includes savings that are coming through here. Do keep in mind, going forward, we need to take a look at this vis-à-vis the commodity inflation that's coming at us. These become the source of money to manage that inflation that is coming at us. Any throw light on the product pipeline post-Hornbill? What new models can we expect post-Hornbill? Clearly, that's something that we wouldn't want to discuss it. The right forum for that will be the auto expo once we have made up our mind as to what we're going to show out there. We will definitely share it with you. Next question is from Stephanie Vincent from JP Morgan. How much is the semiconductor and raw material issues respectively hitting the FY 2022 guidance? Adrian, do you want to pick it up? Yeah, I think I have actually already, Balaji, within my 4% or better question, which I covered semiconductors and within the margin question, which I covered the raw materials. Nothing to add to previous questions. Okay. The next one is from Basudeb Banerjee, Ambit Capital. Why are they saying led by one-off restructuring cost of GBP 500 million-GBP 550 million, JLR will be FCF neutral? Aren't you confident of maintaining operating cash flows and CapEx of GBP 2.5 billion at last couple of quarter levels? The next one is on India. Adrian, do you want to pick this one? Yep, I will pick that one up. Yeah, we are actually confident, but unless I say this, then I have to give you a different set of numbers, right? The bottom line is our commitment is to reduce net debt, and we won't go backwards. We will have a challenging quarter one for the reasons already discussed, but we will get that back over the balance of the year. Our net debt was GBP 1.9 billion at the end of March, but we expect at the end of March next year to be slightly lower. For the moment, our guidance with the uncertainties we have already mentioned is maintained as cash flow positive or better than breakeven despite the GBP 500 some million restructuring costs. You take that away, it will be GBP 500+ million cash flow. The question is for India. India CapEx outlook for FY 2022. It's been higher than INR 1,800 crore as stated earlier. Plan for the year is more like INR 3,000 crore-INR 3,500 crore. The INR 1,800 crore was for FY 2021 in the midst of a pandemic where we were planning a business continuity plan. Having seen three quarters of performance, we are very clearly seeing that once the pandemic is out, the lockdowns are out, there is definitely a demand resurgence that happens. Therefore, this time it's not a business continuity plan, it's a business agility plan. Therefore, we want to be as flexible as we can. Obviously, if the situation dramatically alters, we will not hesitate to go back to the drawing board on this. At this point in time, we see the current issues are temporary and therefore we intend to generate positive cash flows despite those CapEx investment there. They are going towards products and technologies which are going to aid growth. We will not be pedantic about putting a number out there. We are watching it and moving it dynamically in line with demand out there. That's how we see it. Next question is from Rakesh Kumar, BNP Paribas. If profitability continues to improve at JLR, is there a possibility that we could increase our CapEx plan to accelerate the Reimagine strategy timelines? What share of sales comes from lease sales in U.S. and Europe, and what are the peak share of leases we have seen historically? Adrian? Yeah, okay. My answer to the first one is unlikely. We've got a real clear plan we're setting out, right? We're making sure that every element of that plan is fundamental to the success of this organization. We don't actually think we've missed anything. Throwing money at this doesn't necessarily speed you up, actually. The agile approach, the scrums, the sprints, the empowerment, the making sure people are responsible to fixing things first time through, that will speed us up. We've made a commitment, actually, that overall, in time, we will be 40% faster than we are today. That's a huge improvement, a huge commitment, and that's what we maintain. At the point in time as we go forward, as we eliminate our debt, just as the Investor Day, as we eliminate our debt and then decide what we wish to do with the cash flow positions, TML friends, Tata Sons friends, and our boards will discuss what we wish to do. The current plan stands and the investment guidance stands as well. Lease sales, Adrian. What share of lease sales come from lease sales in the U.S. and Europe? What are the peak shares? Yeah. Well, again, we're overwhelmingly consistent with the rest of the marketplace. U.S. is our highest lease market, as you would know, followed by U.K. and markets in Europe, mostly Germany. I do have some data in front of me, which suggests it's about 80% in North America. That's consistent with the marketplace. Next one is from Ronak Sarda of Systematix. Let's take the JLR piece first, and I'll do the PVPs later. For JLR, will lower D&A and employee benefits start reflecting from Q1? We have, in a way, gone back to the pre-Jag XE phase. Should we expect JLR will focus mainly on profitable models? Second question. The last one on JLR, the easy one, I'll pick it up. For JLR, can we have an EBIT waterfall instead of a PBT? You already have that in the slide. The bottom line has that, so you can use that in case you need more clarification. Do reach out to us. Back to you, Adrian, for the first two pieces. Okay, let me take D&A, first of all. Look, our D&A over the next few quarters will be similar to the second half last year. Don't forget, the MLA-Mid vehicles were not available to be introduced in the first half of this year. At the point we would have introduced them, 12-18 months' time, that's when the reduction in the D&A would have kicked in, of course. D&A will next actually change when we introduce our new models, Range Rover and Range Rover Sport, in 12-18 months' time. Employee benefits, as we release those 2,000 people over the course of the next three to six months, then yes, the cost of people will actually start to fall as well. GBP 100 million a year, we believe, but in a particular quarter, that filters down to GBP 20 million or GBP 25 million. I don't anticipate that to dramatically impact the in-quarter data you will see. I think the profitable model piece, as far as Reimagine has been explicitly called out, that we are looking at profitable growth here, and that's how it will be done. PVP impairment, yes, these are non-cash costs. The question is, are these non-cash costs? Are these reversals non-cash? Absolutely, yes, they are. Moving to the next slide, next topic. Amyn Pirani, CLSA. The first Land Rover BEV will come in 2024, do you think it may pose a risk in models such as Evoque and Discovery Sport where competition is already in the process of launching BEV? Look, we'll have a great Evoque and a great Discovery Sport under our EMA platform shortly afterwards. If it were to, the time to new vehicle delivery is quite short, so that wouldn't be a concern for us. Okay. Again, on JLR, this is from Jinesh, once again, Motilal. JLR realization declined sharply quarter on quarter by 9%. What are the key reasons behind it? I think you've already explained it extensively in the previous question. Therefore, maybe we'll take it as given. Order book of 100,000 units for JLR. Can you give some flavor on which models, region, and make up of this order book? Is this due to supply chain impact? Are we done with the write-offs to streamline the new model in the business? Finally, on effective tax rate question as well for FY 2022. Okay. Let me take them as you've asked them. The order book 100,000 units of late has been growing about 2,000 units a month. The phenomenon in our business that most of those ordering processes happen in the U.K. and Europe, and that's where 60% of the order book is. Less in China, less in North America. That's just a buying phenomenon and a logistics phenomenon, right? Vehicles have to be there in place because the pipeline to get them there is so long. Mostly U.K. and Europe. Particular emphasis on our PHEV vehicles. They have had a dramatic impact in the marketplace. Some of those vehicles in some markets in Europe have up to a 12-month waiting list for. Clearly, those customers are going to have to be super patient for us. Ultimately, yes, the answer is, it is the result of the supply side, and as we work through some of those supply issues, let me just reference for the moment, semiconductors, but there are also PHEV issues, then we would expect those order books to actually start to normalize in six, nine or 12 months' time. Are we done with write-offs to streamline the new normal of the business? We believe so. We don't have anything left that we're aware of, right? We really think we've had a strong six-month review of what our strategy is, and we think we've communicated that to you, and we think we've actually made the adjustments we need to make. As you would know, our external auditors have been working alongside us for three months, and they agree with us. I don't expect any additional adjust for any of the elements that we have actually communicated as a part of Reimagine to date. Effective tax rate expected in FY 2022. Obviously, the tax rate's been pretty damn weird over the last 12 months or so because of losses and non-allowance of deferred tax assets. As we become more profitable, obviously that deferred tax position will change, and we'll be left with a couple of phenomena. We'll be left with a phenomenon called overseas. We expect, obviously, the tax rate will now become profitable overseas, so we will be paying taxes, you would have seen this time around. We would expect the deferred tax asset to start to normalize the effective tax rate also. I suspect that will happen later this year as our profitability grows in H2. Got it. Next one from Aditya Makharia, HDFC Securities. Congrats on the market share gains at Land Rover. What are the impacts that Tesla is having on the luxury market as the volumes are now 500,000? Can you give some color on the same? Maybe I can take this one, Balaji. Thierry speaking. I think that, even if we don't talk very often about competitors in this type of session, the reality of, if you look at Tesla today, is that they're not really in the luxury market. More and more, they are less, to a certain extent. They started with the high-end premium, and now if you look carefully to the range of cars and associated volumes, you will notice that it's more and more going to the mid-premium. Which is giving us a huge space. Okay, thanks, Thierry. A question from Thakur again. Can you share an update on what's happening with the BMW partnership on EDUs? Thierry was quoted last week by Reuters as saying that JLR is exploring with BMW on going further with the partnership. Can you share anything that is on these areas? No, we continue to work with BMW, and as such, we are permanently exploring new opportunities. Concerning our, of course, you know our co-development on EDUs, it's of course included. It's clear that we have stopped also our HEV, although we retain the IP and our joint ownership. Thank you. Question from Pramod Kumar, Goldman Sachs. Given the acceleration in pure EV demand led by competition launches and regulatory push, are you comfortable with your EV business? Is there a risk of JLR losing out on demand and customer mind share on EVs? I think what is key, and Adrian answered in that spirit as well for one of the previous questions, is to be on time against the real demand from our customers. Today, the real demand of our customers is very much on PHEV, as you understood. We are glad about that, and at the same time, we are glad to see that the BEV starts really to take off worldwide, and that's why we are fine with our timeline. For sure, we are clearly, and we enjoy the fact that with our Refocus plan, we can see an acceleration of our processes in the company to seamlessly and excellently deliver what we promised, and we are going to make the best use of that. Thanks, Thierry. Question. Maybe this is for Girish and Shailesh. In terms of, can you please guide for India CV and PV growth outlook? How do you see it, given COVID second wave impact on semi-urban and rural India? Girish, you want to go first, and then Shailesh, you want to take it up next? Yes, Balaji. Seeing the last analyst call, I think we had indicated a TIV of almost 750,000 to 800,000 for FY 2022, in which we had predicted a Q1 being at around 170,000. I think at the end of March, and more so in the month of April, we have come across this COVID second wave. Which has indeed created a slowdown in the demand. As we got into May, I think the slowdown has been even more as many states have gone into lockdown. In April, we have seen that the total industry volume has been just 40,000. I think to give a clear projection for the entire year, we need to see how the states unlock, which is something that we are monitoring almost on a daily basis. As the states unlock and the freight starts moving in the country and get back to the pre-COVID levels, I think we should be in a position to indicate what's likely to happen. At this juncture, it is very difficult to provide a firm outlook, although there could be some scenarios as to when the economy gets back to the pre-COVID levels. As we stand here now, it is difficult that we'll be able to get this 35%-37% total industry volume growth that we had indicated. For the exact number, maybe we'll have to wait for the next analyst call. Balaji? Yes. Shailesh? Yeah. I'll just take this. Typically, in PV business, the rural to urban ratio has been 40% rural and 60% urban. Last year, it was slightly tilted towards rural, where it gained a share by 1% or 2%. So far in this year, we have seen that April is the only month where we saw that rural was slightly higher, and that was mainly on account of the lockdown enforcement being a bit weaker in rural areas as compared to urban. The jury is out in terms of how this whole ratio is going to play out as far as rural is concerned. Clearly, we would expect that rural would stabilize around 40% only this financial year also. As far as overall prediction for PV industry is concerned, was supposed to be in the range of 3.2 to 3.4 as per the earlier estimate before we were aware of the COVID second wave. This might decrease by 250,000 to 300,000 as one scenario that is being projected. If the pent-up demand which is getting built in these two, three months, as well as one is seeing that the shift towards personal mobility might become even more stronger given that the customers are expecting multiple waves of COVID and therefore there is greater concern about their well-being and therefore there might be a bigger personal mobility shift phenomena that one might see. Therefore, one can still imagine that this can be recovered, whatever losses that we are going to see in Q1. As far as rural is concerned, we would still think that rural will remain around 40% of whatever demand we see in the PV industry. As far as Tata Motors is concerned, since last year, our mix is more favoring towards urban, given that the young and urban customers are getting more kind of excited with the expressive design and the safety aspect that is being more appreciated in urban centers. That has been as far as the Tata Motors PV business is concerned. Back to you, Balaji. Next question is from Pramod, on any timeline you can share on your JV plan for the India car business. So far, no decision has been taken on this, Pramod. As and when something comes up, we'll definitely share it with you. Question, this is on chip shortage. Can you give some more color on the chip shortage? How long will this last? How do we plan to mitigate the same? Also, does this affect our CV roll-out plans and the CV roll-out plans? Thierry, you want to pick this up? Yeah, I can take that one, of course. I will not repeat the comment from Adrian, which were clear enough, I believe, on the shortage in terms of impact. I think it is important to say that during the first part of this crisis, the team did an incredible job to mitigate that risk to the extent that the impact, I think, on the Q4 of last fiscal year was about 7,000 units, which was quite limited without big consequences on our strong figures, as you could see. But from a crisis, you always learn, and you find opportunities. And for us, what I am learning with the team is about our Tier 2 and Tier 3, our microprocessor suppliers, and the way they work, the way they operate. At the end of the day, what's happening is that we need a change in the way we are operating our supply chain with them. It's exactly what we are preparing at the moment to have a structural fix to this problem. Thank you. Guenter, do you want to give us color on the implication of that in the? Balaji, my pleasure. As already mentioned earlier by Girish and Shailesh, in the first quarter, because of the dedication, the commitment of the teams in PV and CV, although we had certain shortages, we could actually prevent supply impacting our delivery position in order to give us the chance to actually meet a strong demand, as already highlighted. As we expected that it couldn't get worse and felt pretty comfortable having the situation to a certain extent under control. The situation has already, as mentioned by Shailesh on the one slide, has worsened to the extent that we see across the board significant constraints, where we are now working with the team based on the database established in the first quarter, more or less on a daily way on the mitigation of the impact on production. What does it mean? We have actually looked deep into the ECUs in order to understand which kind of chips from which kind of supplier were actually used by our Tier 2, second tier, first tier suppliers. In order to see whenever there's a constraint, which of the ECUs and therefore which kind of components or modules could be impacted. We started to establish direct contact with the chip suppliers, although we are not contractually linked with them. Since we have established relationships from the past, it also helped to ensure that our demand got prioritized, got met, and parts were made available by the chip suppliers to our second and first tier suppliers in order to have transparency in the first instance, and to a large extent, to the largest possible extent, also full control of the situation. Nevertheless, as already indicated by Thierry, the situation at Tata Motors is not different to the one at JLR. It's a daily struggle, it requires lots of detailed review work effectively on a daily basis by the teams, in order to keep the supply chain going and to limit the impact. Nevertheless, we expect the situation, as mentioned, will get worse in the first quarter. We expect some kind of an improvement in the second quarter, but it's also because of the fact, as mentioned by Girish and Shailesh, that we have started to actually build some stock because of some of the shutdown days we have experienced in the last couple of days because of the COVID situation in India. That we hope that we can actually get back to full production in the moment we get out of the lockdown. We echo what is generally the expectation of the industry, that as of the second half of the fiscal year, we are going to see a gradual improvement of the situation. To what extent? I think it would be too early and would be too much of a kind of crystal ball approach to say as of October we are going to be safe. We expect at least a gradual relaxation of the situation on the way forward. Thank you. Thanks, Guenter. Question from Chirag Shah, Edelweiss. JLR commodity cost. How does commodity contract work? Annual, semiannual? How does the commodity hedging is different from revenue hedging? If you break raw material cost into commodity, then value add, how much will the commodity substance base be of the total RMC? Adrian? It's Ben Birgbauer, the Treasurer at Jaguar Land Rover. I'll pick that question up. I think on the first piece of it, how does the commodity contract work? I think it's different across different commodities, it's really difficult to answer that question in the context of this event. I think on the second question around how is commodity hedging different, I think one thing I'd say is generally the horizon is shorter. On FX, we go out four to five years. In practice with commodities, we're really only going out about two years and quite a bit reduced percentage in the second year. I think the other thing that's worth mentioning is the hedge accounting is different. We have hedge accounting for the FX. Essentially both the P&L impact of the hedge and the cash flow both occur when the hedge matures. In the case of commodities, actually, there's not hedge accounting, so there's an immediate mark to market, which comes through our P&L, and that's why you see that tendency, that number in our profit bridges, but then the cash only flows when the contract actually matures. There is a difference between the timing of the cash flow and the profit. Then I think on the last one, just what is raw material cost as a percentage of RMC. I don't have that number at the tips of my fingertips, but what I generally say is it's a second order kind of number. I think that the commodities as a total value of components that we buy is smaller than you would think. Just for an example, in Q4, year-over-year, commodities was worth GBP 19 million unfavorable despite the significant move in commodities that you've seen. Thank you, Ben. I think the second part of the question, can you assume from here on there won't be any extraordinary charges? I think Adrian has already answered. Let me take a question from Pramod of InCred Capital. JLR VME reduced by 250 basis points year-on-year. Can you sustain it considering RR changeovers in the coming quarters? How will demand pull help you here? The second part for Tata Motors, I will take it up. Adrian? Yes, of course. Yeah. With the health of sale approach, with our taking out, deliberately reducing dealer stocks, I think we took you a lot through that detail through the previous two presentations. That continues to be our intent. We were surprised by the scale of the impact of the marketplace and the speed of that impact, and it's certain that when we have more supply concerns and demand concerns today, that VME over that period of time will be at levels lower than I previously indicated. Hence why I've said earlier, expect in the first half a number closer to 5% rather than the 6% underlying we were at previous to that. As we grow back demand, then we'll see how the marketplace responds later in the year. In the first half of this year, it will be certainly lower than the 6% guidance I've previously given for sure. Thanks, Adrian. Second, I will take it. This is on collections in Tata Motors Finance. There are two questions on that. Two people have asked the same question. How is it performing post the COVID? As I said in the presentation, we ended the March quarter at 105% kind of collection efficiency. This has obviously come down to more like about 82%, 83% in the month of April, and we are expecting this to go down even further. It will be a painful quarter for Tata Motors Finance as they navigate this because the issue is not about just cash flows, it is also about feet on street and infrastructure. We are working through this and ensure this comes back on track as earlier, obviously ensuring safety of our people. The second question is on growth of CV, which I think Girish, has already answered. Let me, [collection] the second question you answered. Girish, the question is more to you and Shailesh. Price increases taken in CV and PV so far this year. How much of that raw material impact is likely in Q1? Do you want to pick it up, Girish and Shailesh? Yes, Balaji. CV already taken a price increase of around 1%-1.5% on 1st January of this calendar year, which is Q4 of FY 2021. On 1st April, we took another increase of 2.5% across all the models, which is this quarter. That's the kind of price increase we've already taken. In terms of raw material impact for first quarter, I think it can be divided into two groups. One is the precious metals, which goes into after treatment, so that is more internationally linked, and therefore that is kind of going up, and we have six monthly contracts there. The second one, of course, is the steel, which is although linked to the international prices, is also dependent on domestic consumption. As of now, with the auto demand going down, we are yet to have any dialogue in terms of the steel price increase. That's the situation on the commodity cost in this quarter. Shailesh? Yeah. I think the second part of the question, the response will be the same for PV. As far as the price increase is concerned, in Q4 of FY 2021, we have taken about 1.6% weighted average price increase. In May, we have taken additional 1.8% weighted average price increase. Back to you, Balaji. Thank you. Maybe we have time for one last question. This is from Nishant Vass. Adrian, coming your way. Can you shed some light on the CJLR business improvement plan? What's the timeline for EBIT break even for that business? Of course, Balaji. If you look at the data and back to the charts, I should have called it out actually. The year-over-year chart does show quite a dramatic improvement last year over the previous year. I think the number is 99 million improvements, you'll see that. My first response is it's already happening. The health of CJLR is starting to improve. It's nowhere near where we wish it to be. You know what? The semiconductor shortages of CJLR will teach us a lot of things because a lot of our turnaround model in the import business actually was a result of deliberately constraining the pipeline. A huge improvement in transacting values, reduced VME and gross margin. Some of that may be enforced on us over the next few months. We'll see how the market responds. We hope the market responds favorably there. The other side of this is the Project Charge program, which we talked about as well last time to you. We now introduce the Project Charge program formally to CJLR, working alongside our Chery partners and colleagues. We'll just be tougher on spend, right? We'll just be tougher on spend because there are still opportunities for structural cost reduction in CJLR. You think about how we've applied Project Charge within Jaguar Land Rover, a resetting of eight years of our structural cost base. We haven't done that yet within CJLR. There's lots of opportunity. It takes a bit more time because we have to bring our partners along with us, of course. I do expect us going forward to find ways to actually improve our viability, profitability in CJLR. It's a dramatic turnaround in the previous 12 months, so please, we shouldn't pass that point by. Thank you. With this, I think we are on the dot 8:00 P.M. here. Thanks everybody from TML and JLR side, and more importantly, thanks everybody who attended the call, taking the time to attend the session and understand our results. Much appreciated. Do stay safe and sound, and wish you all the very best to you and your families in the coming days. Thank you, and look forward to speaking to you next time as well. Thank you. Thank you. On behalf of Tata Motors Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.