 "Tata Motors Q3 results: Net profit jumps 137% to Rs 7,025, revenue up 25%")
Tata Motors’ third quarter net profit beat analyst estimates, growing by 137 per cent year on year (Y-o-Y) to Rs 7,025 crore on favourable volumes, reduced costs on component sourcing with easing semiconductor chip supplies. The auto major’s revenue from operations went up 25 per cent Y-o-Y.
The consolidated Ebitda came in at Rs 15,800 crore, up 60.6 per cent with a resulting ebitda margin of 14.3 per cent. The profit before taxes and exceptional items improved by Rs 4,400 crore to Rs 7600 crore. On a sequential basis, Profit after tax (PAT) surged 86.6 per cent and revenues grew by 5 per cent.
Bloomberg analysts' estimates indicated net sales coming in at Rs 108,555 crore (up 23.7 per cent Y-o-Y), and PAT growth of 55.2 per cent to Rs 4,590 crore.
The net automotive debt was reduced to Rs 29200 crore. Tata Motors stock was flat on the BSE ending day's trade at Rs 878.8 apiece.
“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 JLR. We achieved net debt reduction of Rs 9,500 crore in Q3 and we are confident of achieving our deleveraging plans,” the company said in a statement.
PB 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.”
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As for the JLR business, it posted a record third-quarter revenue of 7.4 billion pounds with its highest quarterly profit before tax since Q4FY17 of 627 million pounds during the quarter. JLR’s free cash flow was 626 million pounds in Q3FY24 and 1.4 billion pounds for the year to dateYTDFY24. Net debt reduced to 1.6 billion pounds.
The commercial vehicle (CV) business revenue was up 19.2 per cent to Rs 20,100 crore and the company had a Vahan market share of 38.7 per cent in Q3FY24. Tata Motors said they are working on a strategy to improve market share in light commercial vehicle space. As for the passenger vehicle (PV) business, the revenue was up 10.6 per cent to Rs 12,900 crore and a Vahan registration market share of 14.6 per cent. EV registration market share came in at 73.2 per cent, while the EV penetration was at 12 per cent, CNG penetration at 14 per cent in YTD FY24. The company has signed MOUs with charging point operators and Bharat Petroleum for setting up 17,000 chargers in the next year.