Tata Motors reported a substantial increase in its consolidated net profit, reaching Rs 7,025 crore in the October-December quarter, marking a two-fold rise from Rs 2,957.71 crore in the same period the previous year. This surge was attributed to strong demand for both passenger and commercial vehicles in India, sustained growth in Jaguar Land Rover models, cost-effective raw materials, price adjustments, and an improved product mix.
The company’s total vehicle sales, encompassing both domestic and international markets, amounted to 234,981 vehicles for Q3, compared to 228,169 units in the corresponding quarter of the previous fiscal year.
Tata Motors’ revenue experienced a notable 24.9 percent year-on-year increase, reaching Rs 110,577 crore, up from Rs 88,489 crore in the same quarter the previous year, as disclosed in an exchange filing.
The results surpassed analysts’ expectations, with a year-on-year net profit growth of 54 percent anticipated, amounting to Rs 4,547 crore, and a projected 22 percent increase in revenue to Rs 1,08,169 crore for the October-December quarter.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) exhibited a substantial 42.5 percent year-on-year growth, reaching Rs 15,333 crore. The operating margin also expanded by 171 basis points, reaching 13.94 percent.
The revenue from Jaguar Land Rover (JLR business) increased to Rs 76,665 crore in the last quarter, compared to Rs 58,863 crore in the December 2022 quarter.
Tata Motors maintained a positive outlook on all three auto businesses in the near term, expecting further improvement in performance in Q4 due to seasonality, new product launches, and enhanced supplies at JLR. The company achieved a net debt reduction of Rs 9.5K crore in Q3 and expressed confidence in realizing its deleveraging plans.
Tata Motors’ shares concluded at Rs 878.80 apiece on the BSE, representing a 0.05 percent increase on February 2. P.B. Balaji, Group Chief Financial Officer, expressed satisfaction with the strong quarterly results, emphasizing the commitment to sustaining this performance in the upcoming quarters and delivering on their de-leveraging plans.
Tata Motors Q4 Result Snapshot
- Tata Motors Oct-Dec consol net profit 70.25 bln rupees vs 29.58 bln
- Analysts saw Tata Motors Oct-Dec consol net profit 47.82 bln rupees
- Tata Motors Oct-Dec consol revenue 1.106 trln rupees vs 884.89 bln
- Tata Motors: Oct-Dec consol EBITDA up 60.6% YoY at 158 bln rupees
- Tata Motors: Oct-Dec consol EBITDA margin at 14.3%, up 320 bps YoY
- Tata Motors Apr-Dec consol PAT 139.92 bln rupees vs 29.94 bln loss
- Tata Motors Apr-Dec consol revenue 3.179 trln rupees vs 2.400 trln
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