Owing to improved operating leverage, favourable commodity prices and strong volume growth across various segments, Tata Motors posted a staggering 222 percent growth in its consolidated net profit at Rs 17,407.18 crore. The company’s Profit after Tax (PAT) during the same period last year stood at Rs 5,407.79 crore reported during the same period last year.
The company’s revenue from operations increased 13 percent to Rs 119,986.31 crore for the quarter under review from Rs 105,932.35 crore a year ago.
The results exceeded analysts’ expectations as the average estimates of six broking firms by Moneycontrol forecast profit to climb to Rs 7,084 crore in the fiscal fourth quarter, higher by 33 percent from the same quarter of the previous fiscal.
The company’s revenue from operations for the automobile giant was also predicted to surge 15 percent on-year to Rs 1,22,008 crore, as per the same estimates.
For the entire financial year 2023-24, Tata Motors' net profit reached Rs 37,764.33 crore, a significant surge from Rs 479.20 crore reported during the FY23.
PB Balaji, Group Chief Financial Officer, Tata Motors said, "It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows. The India business is now debt free, and we are on track to become net automotive debt free on a
consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years.”
However, Tata Motors said that domestic demand over first half of 2024-2025 fiscal is expected to be slow.
"We remain cautiously optimistic on domestic demand over the full year and expect H1 to be relatively weaker. The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. Despite this, we are confident of delivering a strong performance in FY25," it said.
The automakers' board of directors also recommended final dividend of Rs 6 per Ordinary Share and Rs 6.20 per ‘A’ Ordinary Share for the financial year ended March 31, 2024.
Last week, Tata Motors had said that its total wholesales rose 11.5 percent year-on-year to 77,521 units in April 2024 as compared with 69,599 units in April 2023.
The company's total domestic dispatches rose 12 percent to 76,399 units last month as against 68,514 units in April 2023, the auto major said in a statement.
Tata Motors' UK subsidiary Jaguar Land Rover (JLR) unit continued its strong financial performance trend in the financial year, with another record-breaking quarter in Q4 FY24.
JLR's revenue for the quarter stood at 7.9 billion pounds, marking an 11 per cent surge compared to Q4 FY23 and a six per cent rise compared to Q3 FY24. Furthermore, JLR's revenues for FY24 reached 29.0 billion pounds, a 27 per cent increase compared to the prior year.
Tata Motors said it expects JLR's earnings before interest and taxes (EBIT) margins in fiscal 2025 would be similar to the 8.5 percent it clocked in the previous fiscal year. JLR's earnings before interest and taxes (EBIT) margin came in at 9.2 percent for the quarter.
Meanwhile, Tata Motors expects the demand for passenger cars to remain strong, although the high base effect, coupled with extraneous factors
elections, heat wave, etc., may keep the growth rate moderate.
The Indian automaker stayed that it will continue to focus on retails and deliver market beating growth to sustain double digit EBITDA margins and positive free cash flows for PV business.
Shares of Tata Motors on May 10 closed 1.64 percent higher at Rs 1,047 apiece on BSE from the previous day's close.
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