Business Standard

Tata Motors Q2 result: Auto major reports net profit of Rs 3,764 crore

Tata Motors said it remains optimistic about its performance due to a strong product pipeline, a seasonally stronger H2 and continued focus on cash accretive growth

Tata Motors, Tata

BS Web Team New Delhi

Listen to This Article

Tata Motors on Thursday reported a net profit of Rs 3,764 crore in the quarter that ended on September 30, as compared to the loss of Rs 944.61 crore in the corresponding quarter last year. The net profit was up 17.5 per cent from Rs 3,202.80 crore in the previous quarter. 

The company's total revenue from operations was Rs 1.05 trillion, up 32 per cent from Rs 79,611.37 crore in the same quarter last year. The total revenue was also up from Rs 1.02 trillion in the previous quarter. 

The revenue of Jaguar Land Rover improved by 30.4 per cent to 6.9 billion pounds. The strong wholesales and improved mix resulted in EBIT margins of 7.3 per cent, which was up 630 basis points (bps).
 

The commercial vehicle revenues improved by 22.3 per cent and EBIT improved to 7.9 per cent, up by 560 bps. The company said it benefitted from higher realisations, a richer mix and favourable commodity prices. 

The revenue in the passenger vehicle (PV) segment was down 3 per cent impacted by the transition to the new launches while EBIT margins improved by 140 bps to 1.8 per cent due to savings in commodity costs. 

The company said it remains optimistic about its performance. 

In a regulatory filing, it said, "We remain optimistic on demand despite external challenges and anticipate a moderate inflationary environment. We aim to deliver a stronger performance in H2, due to a healthy order book at JLR, strong demand for heavy trucks in commercial vehicles (CV) and exciting new generation products in passenger vehicles (PV). Our financial performance is expected to improve further owing to a richer mix, continued low-break-even in Jaguar Land Rover (JLR), execution of demand-pull strategy in CV and improving profitability in PV/EV." 

PB Balaji, group chief financial officer, Tata Motors added, "It is pleasing to see all the businesses deliver on their well-differentiated plans this quarter. With a strong product pipeline, a seasonally stronger H2 and continued focus on cash accretive growth, we are confident of sustaining this momentum."

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Nov 02 2023 | 4:32 PM IST

Explore News