Tata Motors on February 2 reported a two-fold jump in its consolidated net profit at Rs 7,025 crore for the October-December quarter from Rs 2,957.71 crore year ago, helped by robust demand for passenger and commercial vehicles in India, sustained growth in Jaguar Land Rover models, easing raw material costs, price hikes and a superior product mix.
Revenue surged 24.9 percent on-year to Rs 110,577 crore as against Rs 88,489 crore in the same period last year, Tata Motors said in an exchange filing.
The results exceeded analysts’ expectations, which expected the Mumbai-based automaker’s net profit to grow 54 percent year-on-year (YOY) to Rs 4,547 crore in the October-December quarter. The estimates also suggested that revenue will shoot up by 22 percent on-year to Rs 1,08,169 crore.
The Tata Group company's earnings before interest, taxes, depreciation and amortization (EBITDA) jumped by a sharp 42.5 percent YoY to Rs 15,333 crore, and operating margin expanded by 171 basis points to 13.94 percent.
The company’s revenue from Jaguar Land Rover (JLR business) climbed to Rs 76,665 crore in the last quarter against Rs 58,863 crore in the December 2022 quarter.
ALSO READ: Tata Motors surges 5 percent to hit all time high, crosses Maruti Suzuki in market capitalisation
Tata Motors’ total vehicle sales across segment in the domestic and international market for Q3 FY2023-24 stood at 234,981 vehicles, higher than 228,169 units during Q3 FY 2022-23.
P.B. Balaji, Group Chief Financial Officer, Tata Motors said, “It is satisfying to see our businesses execute well on their differentiated strategies and deliver a strong set of results for the quarter, thereby making it six quarters of consistent delivery. We aim to end the year on a strong footing and remain confident of sustaining our performance in the coming quarters and delivering on our de-leveraging plans.”
In Q3FY24, Tata Motors recorded wholesales of 138,455 units of Passenger Vehicles (up five percent vs Q3FY23) and 96,526 units of commercial vehicles (up 1 per cent vs Q3FY23). Sales of its British subsidiary, Jaguar Land Rover—excluding the China joint venture—rose 27 percent to 1.01 lakh units.
On the near-term outlook, Tata Motors maintained that it remains positive on all three auto businesses.
“We expect the performance to further improve in Q4 on account of seasonality, new launches and improving supplies at JLR. We achieved net debt reduction of Rs 9.5K crore in Q3 and we are confident of achieving our deleveraging plans,'' said Tata Motors in its regulatory filing to the stock exchanges.
Shares of Tata Motors ended up 0.05 percent at Rs 878.80 apiece on the BSE on February 2.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
