Tata Motors' Q3 FY24 Results Showcase Remarkable Performance

Tata Motors, India's most valuable carmaker, has unveiled its financial results for the October-December quarter of fiscal year 2023-24 (Q3FY24), revealing a stellar performance. The consolidated net profit witnessed an impressive surge of 137.5%, reaching ₹7,025.11 crore, compared to ₹2,958 crore in the same period the previous year.

Key Highlights:

1. JLR Drives Profits: The standout factor in Tata Motors' exceptional performance is attributed to the robust sales in its British luxury car unit, Jaguar Land Rover (JLR). JLR's revenue in the December quarter rose by 22% to £7.4 billion, contributing significantly to the overall consolidated revenue.

2. Total Revenue Growth: Tata Motors reported a substantial 25% YoY increase in total revenue from operations, amounting to ₹110,577 crore in Q3FY24, compared to ₹88,488.59 crore in the corresponding period of the previous fiscal year.

3. Consistent Delivery: The company celebrated six quarters of consistent delivery, with PB Balaji, Group Chief Financial Officer, expressing satisfaction in seeing their businesses execute well on differentiated strategies.

4. De-leveraging Plans: Tata Motors remains confident in sustaining its performance, aiming to end the fiscal year on a strong footing. The company is optimistic about the near-term outlook and anticipates further improvement in Q4 across all auto businesses. Notably, they achieved net debt reduction of ₹9.5K crore in Q3.

Segment-wise Performance:

Jaguar Land Rover (JLR): JLR's positive EBIT margin of 8.8% in the December quarter, more than double the year-ago period, was a highlight. The revenue for the year-to-date period rose by 35% YoY to £21.1 billion, marking its highest-ever revenue in the first nine months of a financial year.

Tata Commercial Vehicles (CV): The CV segment witnessed a revenue rise of 19.2% to ₹20,123 crore, driven by medium and heavy commercial vehicles. Strong EBITDA and EBIT margins in Q3 reflect improved pricing, superior mix, and strong realizations.

Tata Passenger Vehicles (PV):The PV segment reported a 10.6% YoY revenue increase to ₹12,910 crore. The improvement in EBIT margins and steady demand were supported by cost savings in commodities, new SUV facelifts, and robust festive season sales.

Future Outlook:

Tata Motors anticipates a positive outlook for all three auto businesses in the near term. With seasonality, new launches, and improving supplies at JLR, the company expects performance to further improve in Q4FY24. JLR has increased its EBIT margin guidance for FY24 and now expects it to be over eight percent.

Tata Motors' Q3FY24 results underscore a resilient performance, bolstered by strong contributions from JLR and favorable outcomes across commercial and passenger vehicle segments. The company's strategic execution and confidence in sustaining momentum indicate a promising trajectory for the coming quarters.