Tata Motors Q3 Results: Net Profit Soars 133% To Rs 7,100 Crore; JLR's Revenue Stands At 7.4 Bn Pounds

Tata Motors clocked a reduction in net debt by Rs 9,500 crore to Rs 29,200 crore, reaffirming its commitment to deleveraging targets

Home-grown auto major Tata Motors Ltd announced a remarkable surge in its net profit by 133.32 per cent, reaching Rs 7,100 crore for the quarter ended December 2023 (Q3). This substantial growth comes in comparison to the Rs 3,043 crore net profit recorded in the same period of the previous year, marking the company's first profit in two years. According to the company's statement, consolidated revenue also witnessed a notable rise, climbing 25 per cent year-on-year (YoY) to Rs 1,10,600 crore in Q3 of the current fiscal year.

During the December quarter, the company observed a rise in EBITDA (earnings before interest, taxes, depreciation, and amortisation) by 320 bps to 14.3 per cent. Moreover, improved wholesales and reduced material costs contributed to EBIT margins of 8.8 per cent, reflecting a significant increase of 510 bps.

Tata Motors clocked a reduction in net debt by Rs 9,500 crore to Rs 29,200 crore, reaffirming its commitment to deleveraging targets. The company also highlighted a more than double increase in EBIT margin to 8.8 per cent in Q3 FY24.

Revenue from commercial vehicle sales grew by 19.2 per cent to Rs 20,100 crore, with EBIT increasing to 8.6 per cent. The growth in commercial vehicle volumes domestically and a notable increase in exports further buoyed the company's performance. On the passenger vehicle front, revenues rose by 10.6 per cent to Rs 12,900 crore, with EBIT margins improving by 60 bps to 2.1 per cent. The increase in passenger vehicle volumes, supported by a robust demand during the festive season, contributed to this growth.

The auto company expressed optimism regarding the future performance of its auto businesses, anticipating further improvement in Q4 driven by seasonality, new launches, and improved supplies.

JLR (Jaguar Land Rover) also delivered a robust performance in Q3 FY24, witnessing an increase in wholesales to fulfill more client orders. JLR's revenue for the quarter stood at 7.4 billion pounds, up by 22 per cent YoY, with a positive EBIT margin of 8.8 per cent. Furthermore, JLR is on track to achieve its profitability and cash flow targets, with an expected EBIT margin for FY24 likely to exceed 8 per cent.

In response to the outstanding financial performance, T Adrian Mardell, JLR Chief Executive Officer, expressed optimism about the company's future prospects, emphasising their commitment to successfully delivering the Reimagine Strategy amidst potential challenges.

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