Tata Motors reported a consolidated net profit of Rs 7,145.43 crore in Q3 FY24, steeply higher from Rs 3,043.15 crore posted in Q3 FY23.
Total revenue from operations jumped 24.96% YoY to Rs 11,05,77.14 crore in the quarter ended 31 December 2023.The companys profit before tax stood at Rs 7,493.96 crore in Q3 FY24, steeply higher than Rs 3202.61 crore posted in corresponding quarter last year.
EBITDA for the period under review jumped 60.58% to Rs 15,822 crore as against Rs 9,853 crore posted in same quarter last year. EBITDA margin to 11.1% in Q3 FY24 as compared to 8.4% reported in Q3 FY23. EBIT margin increased to 8.3%, up 390 bps on YoY basis.
The growth in total revenue and EBIT was driven by all automotive verticals continuing their profitable growth trajectory.
Going forward, Tata Motors remain positive on all three auto businesses. It expects the performance to further improve in Q4 on account of seasonality, new launches and improving supplies at JLR.
JLR reported a net profit of 592 million pounds in Q3 FY24 as against a net profit of 261 million pounds recorded in Q3 FY23. Revenue jumped 22.08% YoY to 7,375 million pounds in the quarter ended 31 December 2023.
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JLR delivered another strong performance in Q3 FY24, increasing wholesales to fulfil more client orders in the quarter. The higher profitability yoy reflects favourable volumes and reduced chip costs, offset partially by unfavourable fixed marketing, administration and FX revaluation.
Free cash flow (FCF) of 626 million pounds in the quarter ended 31 December 2023.
Total liquidity was at 5.8 billion pound including the 1.52 billion pound undrawn revolving credit facility.
Looking ahead, the company is on track to achieve its profitability and cashflow targets. The EBIT margin for FY24 is expected to be over 8% and it continue to expect operating cashflow to support net debt of less than 1 billion by the end of FY24 and positive net cash in FY25.
Tata Commercial Vehicles (Tata CV) recorded a profit before tax of Rs 1,656 crore in Q3 FY24, up 76.54% from Rs 938 crore reported in Q3 FY23. Revenue from operations during the quarter was Rs 20,123 crore, higher by 19.16% YoY on account of salience towards medium and heavy commercial vehicles and better market operating price.
In its outlook, Tata CV said, we expect demand to improve in Q4FY24 across most segments due to the Governments continuing thrust on infrastructure development, the promising growth outlook of the economy and our demand-pull initiatives. We will continue to improve realizations whilst growing VAHAN share, drive innovation to address specific micro segment needs, focus on market development and scale up EV penetration. Focused actions are underway to win back the market share in SCVPUs. Profitability continues to remain the key focus area and we will strive to ensure consistent margin improvement and delivery of double-digit EBITDA margins.
Girish Wagh, executive director, Tata Motors, said, The CV industry witnessed a pause in sales growth in Q3FY24 on account of the higher base effect, impact of elections held across five states, and the post festive seasonal slowdown in rural consumption. While M&HCV and Passenger Commercial segments witnessed healthy growth, shrinking IL&CV and SCVPU sales pulled down overall volumes during the quarter. Owing to pricing discipline and richer mix, profitability continued to improve and we achieved 11.1% EBITDA margins in Q3 FY24.
We will continue to drive the business with strong customer connect, proactive demand-pull initiatives and with innovations in product and service. By improving customer affinity for our brands, we intend to further step-up registration market shares sustainably, and improve realisations and profitability.
Tata Passenger Vehicles (TATA PV) recorded revenue of Rs 12,910 crore (up 10.62% YoY). It reported a profit before exceptional item and tax of Rs 408 crore in Q3 FY24, up 27.10% from Rs 321 crore posted in the same period a year ago.
The auto maker said that PV volumes were at 138.6K units (over 5% YoY) supported by a strong supply situation, new SUV facelifts, and a robust demand during the festive period.
On Outlook front, TaMo said, We continue to see healthy growth for our business with multiple new products scheduled for launch in CY2024. The recently launched Punch.ev has garnered strong interest and will scale up EV volumes further. We successfully retooled Sanand facility in the shortest span of 12 months, taking it to a new level to accommodate a wide range of existing products and future new models to come. We continue to strengthen the EV ecosystem through exclusive TATA.ev stores and are accelerating the charging infrastructure. We remain focused to achieve double digit EBITDA margins in PV, grow margins in EV and deliver market beating growth.
Shailesh Chandra, managing director, Tata Motors Passenger Vehicles & Tata Passenger Electric Mobility, said, Q3 FY24 was a strong quarter for the PV industry with robust festive sales. However, coming off a high base, the industry recorded a single digit growth at an overall level while the sales of EV and CNG powered vehicles grew over 90% and 25% respectively, signaling a growing preference for green and smart technologies by customers. Tata Motors recorded wholesales of 138.5K units (up 5% as against Q3 FY23) with a strong focus on retails resulting in a significant rise in Vahan registrations for Q3 FY24 (up 14% as against Q3 FY23 and 24% as against Q2FY24). EV sales grew 21% as against Q3 FY23 (domestic + IB) and CNG grew by a substantial 214%. New avatars of the Nexon (ICE & EV), Harrier and Safari and our EV offering Punch.ev received excellent response from the customers. The business continued to improve financial performance and EV business (excluding R&D spends) was EBITDA breakeven. Going forward, we will remain agile and are optimistic about continuing the growth trend in the quarters ahead.
Finance costs reduced by Rs 191 crore to Rs 2,485 crore during Q3 FY24, due to reduction in gross debt during the period.
For Q3 FY24, net profit from joint ventures and associates amounted to Rs 193 crore compared with a profit of Rs 103 crore in Q3 FY23. Other income (excluding grants) was at Rs 752 crore in Q3 FY24 as against Rs 455 crore in Q3 FY23.
Free cash flow (automotive) for Q3 FY24, was positive at Rs 6.4 thousand crore driven by strong improvement in cash profits. Net automotive debt reduced to Rs 29.2 thousand crore.
Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.
Shares of Tata Motors ended 0.05% higher at Rs 878.80 on the BSE.
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