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Tata Motors on Friday (November 8, 2024) reported Q2 consolidated net profit down 11% to ₹3,343 crore as compared with ₹3,764 crore in the year ago period.
Revenue from operations during the quarter dropped 4% to ₹1,00,534 crore as compared with ₹1,04,444 crore in the same period last year.
Total expenses stood at ₹97,330 crore against ₹1,00,649 crore in the same quarter a year ago, the company said.
PB Balaji, Group Chief Financial Officer, Tata Motors said, “Growth in the quarter was impacted due to significant external challenges as highlighted earlier. Overall, the business fundamentals remain strong, and we remain focused on our agenda of driving growth, competitiveness and free cash flows. As the supply challenges ease and demand picks up, we are confident of steady improvement in our performance and delivering a strong H2.”
Tata Motors is India’s third-largest carmaker by volume, but relies on British luxury carmaking unit Jaguar Land Rover for two-thirds of its revenue.
Jaguar Land Rover (JLR) revenue was down by 5.6% to £6.5b. As highlighted last quarter, JLR performance was impacted by temporary supply constraints which resulted in EBIT margins of 5.1% (down 220bps), the company said.
Commercial Vehicle (CV) revenues were down by 13.9% but EBITDA margins improved to 10.8% (up 40 bps) on favourable pricing and material cost savings despite adverse volumes. PV revenues were down by 3.9% but EBITDA margins were steady at 6.2% (down 30 bps) through mix improvements and cost reduction actions.
On the future the company said, “We remain cautious on near-term domestic demand. However, the festive season and substantial investments in infrastructure should help bolster it. JLR wholesales are expected to improve sharply, as supply challenges ease. Overall, we expect an all-round improvement in performance in H2 FY25 and the business to become net debt free by this year.”
Published – November 08, 2024 04:43 pm IST
