Jaguar LandRover - comment

JLR released their quarterly sales numbers and it is virtually the same as previous ones - record order book number and semiconductor shortages constraining actual production/sales numbers. The continued growth in the order book, albeit at a slower rate, is positive and it no surprise the recent launches of the Range Rover, Range Rover Sport and Defender are the main contributor, accounting for 145,000 of the 205,000 orders. However, the production numbers of 75k is lower than expected and the continued chip shortages is a slight worry, as expectations was for supply constraints to improve into second half of this calendar year.
Cashflow and EBITDA will be released in November, and although volumes were lower, JLR have acknowledged the prioritisation of higher margin sales with the constrained chip supply. They expect cashflow near break-even cashflow based on preliminary cash balances of £3.7 billion. Cashflow in the H2 s expected to be positive driven by improving volumes.

This is inline with our model and we will update after the release of the Q2 numbers.