Tata Motors consolidated net profit jumps 219%

TATA MOTORS’ consolidated net profit for the three months to March jumped 219 per cent year-on-year to Rs 17,529 crore, driven by a superior mix, strong realisations at Jaguar Land Rover (JLR) and a significant deferred tax credit.

A Bloomberg consensus estimate had pegged the figure to come in at Rs 6,967 crore for Q4. Consolidated revenues grew by 14 per cent y-o-y to Rs 1.19 trillion, lower than the Bloomberg estimate of Rs 1.20 trillion. There was a deferred tax credit of Rs 9,478 crore during the reporting quarter, including Rs 7,093 crore pertaining to JLR.

PB Balaji, group CFO, Tata Motors said, “The India business is now debt-free and we are on track to become net automotive debt-free on a consolidated basis in FY25. The strong performance has also helped us recognise deferred tax assets.”

Ebitda margin improved to 14.9 per cent in Q4 from 13.3 per cent in the year-ago period. The increase was driven by JLR, whose own margins stood at 16.4 per cent, followed by 12 per cent at the commercial vehicle division and 7.3 per cent at the passenger vehicle division.

The company’s net automotive debt ended at Rs 16,000 crore by the end of FY24. Its board has decided to recommend a final dividend of Rs 3 per ordinary share and a special dividend of Rs 3 per ordinary share.

For FY25, JLR has raised its investment spend to £3.5 billion from £3.3 billion in FY24, which was higher than the £3 billion guided previously. There will be no change in the investment spend at Tata Motors at Rs 8,000 crore for the fiscal. This will go into technology development and new products, said Balaji.

Tata Motors’ global wholesales during the reporting quarter rose 8 per cent y-o-y to 377,100 units, including a growth of 16 per cent in JLR volumes to 110,200 units.

Commercial vehicle wholesale dipped 6 per cent to 111,300 units while that of passenger vehicles grew by 15 per cent to 155,600 units.