Tata Motors Q2 FY25 consolidated net profit fell 11 percent on-year to Rs 3,343 crore, driven by weak performance at its Jaguar Land Rover (JLR) unit and in its commercial vehicles segment. Consolidated revenue for the July-September quarter fell 3.5 percent to Rs 1.01 lakh crore, largely impacted by lower sales volumes, according to the statement filed with the stock exchanges.
The automobile giant's second quarter earnings missed Street expectations. A Moneycontrol poll of analysts pegged revenue to remain flat at Rs 1.05 lakh crore, and net profit to jump 32 percent to Rs 4,968 crore. Its EBITDA fell by 230 basis points to 11.4 percent.
Further, Tata Motors posted a cautious commentary. "We remain cautious on near-term domestic demand," it said in the statement. "However, the festive season and substantial investments in infrastructure should help bolster it," it added.
Ahead of the results, Tata Motors share price fell 2 percent on Friday to end at Rs 803.55 on NSE, with the market capitalisation at about Rs 3 lakh crore. The stock has lost about 31 percent since August this year, after nearly doubling in 12 months.
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Jaguar Land Rover’s revenue declined 5.6 percent to £6.5 billion. Tata Motors said that "temporary supply constraints" also weighed on profitability. JLR’s EBIT margin fell 220 basis points to 5.1 percent. The profitability at JLR was "impacted on account of temporary aluminum supply constraint and a hold placed on 6,029 vehicles for additional quality control checks," said the statement.
Meanwhile, Tata Motors' domestic commercial vehicles revenue dropped by 13.9 percent to Rs 17,288 crore due to sluggish infrastructure activity, a reduction in mining, and lower fleet utilization amid heavy rains.
"In Q2 FY25, domestic wholesale CV volumes were 79,800 units, lower 19.6 percent on-year, impacted by slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilisation due to heavy rains," said Tata Motors.
However, the segment's EBITDA margins saw a slight improvement to 10.8 percent due to "favourable pricing and material cost savings despite adverse volumes", it said.
Passenger vehicle revenue dipped 3.9 percent to Rs 11,700 crore, while EBITDA margins remained steady at 6.2 percent despite weak demand.
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