Tata Motors Ltd. reported third quarter consolidated net profit surged over two times to ₹7,025 crore as compared with ₹2,957.71 crore in the year earlier period due to better performance of all its divisions.
The company for the period ended December 31, 2023 reported revenues of ₹1,09,799.22 crore as compared with ₹87,783.21 crore a year earlier, up 25%.
The company’s India business reported third quarter standalone profit grew to ₹4,570 crore as compared with ₹506 crore a year earlier. The revenues also increased to ₹18,500 crore as compared with ₹15,693 crore in the year earlier period.
PB Balaji, Group Chief Financial Officer, Tata Motors over a conference call 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,” he said.
On the outlook for the future he said, “We remain 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 Jaguar Land Rover (JLR). We achieved net debt reduction of ₹9,500 crore in Q3 and we are confident of achieving our deleveraging plans.”
During the quarter JLR delivered another strong performance, increasing wholesales to fulfil more client orders in the quarter. Revenue for the quarter was £7.4 billion, up 22% versus Q3 FY23.
EBIT margin was positive at 8.8%, more than doubling from 3.7% a year ago. The higher profitability year-on-year reflects favourable volumes and reduced chip costs, offset partially by unfavourable fixed marketing, administration and foreign exchange revaluation, the company said.
Adrian Mardell, CEO, JLR said, “We have delivered a further outstanding financial performance in quarter three, with our best quarterly profit for seven years and our highest ever revenue for the first nine months of a financial year.”
“Sales of our modern luxury vehicles hit new records in the quarter and we are excited about the strong client interest for our soon to launch Range Rover Electric,” he added.
“Tata Motors delivered robust performance in Q3FY24, with all automotive verticals maintaining profitable growth trajectories. Looking ahead, we remain constructive on Tata Motors agility and are optimistic about the company sustaining its growth momentum in the upcoming quarters,” said Dhruv Mudaraddi, Research Analyst, Stoxbox.
