Tata Motors Ltd on August 1 reported a 74 percent year-on-year jump in its Q1 FY25 consolidated net profit to Rs 5,566 crore from Rs 3,203 crore, surpassing Street expectations.
The Mumbai-based automaker stated that its April-June revenue from operations rose 5.7 percent to Rs 1,07,316 crore, from Rs 1,01,528 crore a year ago.
A Moneycontrol poll of six brokerage estimates pegged Tata Motors’ fiscal first quarter net profit at Rs 5,149 crore and revenue at Rs 1.09 lakh crore.
While Tata Motors' shares have risen substantially in the past one week, gaining over 11 percent to Rs 1,144.6 apiece on the BSE, its shares on NSE declined 1.21 percent ahead of the results.
The Indian automaker's consolidated earnings before, interest, tax, depreciation, and amortization (EBITDA) increased 19 percent year-on-year to Rs 15,785 crore, while operating margin expanded to 14.6 percent from 12.9 percent in the year-ago period.
Its luxury arm Jaguar Land Rover (JLR) revenue grew by 5.4 percent during April-June to GBP 7.3 billion with EBIT margins of 8.9 percent, up 30 basis points driven by favourable volume, mix and material cost improvements, it said in a statement.
In domestic market, Commercial Vehicle (CV) revenues grew 5.1 percent on-year to Rs 17,800 crore, while EBIT margins improved 240 basis points to 8.9 percent. The margin benefitted from better realisations and material cost savings, the company said.
Its passenger vehicle revenues fell 7.7 percent, reflecting "challenging market conditions", but EBITDA at 5.8 percent expanded 50 basis points, driven by material cost reductions, it added.
Tata Motors said that the proposed demerger of the company into two separate listed entities is expected to conclude in 12 to 15 months.
Further, the merger of Tata Motors Finance with Tata Capital is also underway and expected to conclude over the course of next 9 to 12 months, it said.
While the company's shares have risen substantially in the past one week, gaining over 11 percent to Rs 1,144.6 apiece on the BSE. its shares on NSE declined 1.21 percent ahead of the results.
Meanwhile, Tata Motors foresees global demand to remain muted and hopes to see a gradual improvement in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favourable macros and festive demand. It also expects the commodities to remain range bound.
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