Tata Motors Q3 Results: Net profit surges 137% to ₹7,025 crore, revenue up 25% YoY; 5 key highlights

  • Tata Motors Q3 Results: India's most valuable carmaker beat Street estimates as it reported a more than two-fold increase in net profit driven by strong sales in its British luxury car unit, Jaguar Land Rover.

Nikita Prasad
Published2 Feb 2024, 04:41 PM IST
Tata Motors’ reported a net profit at  <span class='webrupee'>₹</span>7,025 crore in December quarter (Photo: Reuters)
Tata Motors’ reported a net profit at ₹7,025 crore in December quarter (Photo: Reuters)

Tata Motors Q3 Results: Tata Motors announced its October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a surge of 137.5 per cent in consolidated net profit at 7,025.11 crore, compared to 2,958 crore in the year-ago period. India's most valuable carmaker beat Street estimates as it reported a more than two-fold increase in net profit driven by strong sales in its British luxury car unit, Jaguar Land Rover (JLR).

“It is satisfying to see our businesses execute well on their differentiated strategies and deliver a strong set of results for the quarter, thereby making it six quarters of consistent delivery. We aim to end the year on a strong footing and remain confident of sustaining our performance in the coming quarters and delivering on our de-leveraging plans,'' said PB Balaji, Group Chief Financial Officer, Tata Motors.

Also Read: Tata Motors Q3 preview: Standalone revenue, PAT may come softer QoQ; JLR may deliver better operating margins

On the near-term outlook, Tata Motors remains positive on all three auto businesses. ‘’We expect the performance to further improve in Q4 on account of seasonality, new launches and improving supplies at JLR. We achieved net debt reduction of 9.5K cr in Q3 and we are confident of achieving our deleveraging plans,'' said Tata Motors in its regulatory filing to the stock exchanges. Shares of Tata Motors settled 0.05 per cent higher at 878.80 apiece on the BSE.

Here are 5 key highlights of Tata Motors Q3 scorecard:
1.Revenue, operating performance

Tata Motor's total revenue from operations in the third quarter of current fiscal rose 25 per cent to 110,577 crore, compared to 88,488.59 crore, led by JLR sales which rose 27 per cent in the period. On the operating front, the auto major's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter rose 59 per cent to 15,333 crore, compared to 9,644 crore in the year-ago period. 

EBITDA margin in the quarter-under-review stood at 13.9 per cent, up 300 basis points (bps), compared to 10.9 per cent in the year-ago period, with all automotive verticals continuing their profitable growth trajectory. One basis point is one-hundredth of a percentage point. Profit before tax climbed to 7,493 crore in the third quarter of this fiscal as compared to 3,202 crore in the corresponding period in the previous fiscal.

2.JLR Q3 Scorecard

JLR's revenue in the December quarter rose 22 per cent to £7.4 billion, increasing wholesales to fulfil more client orders. Revenues for year-to-date (YTD)   rose 35 per cent year-on-year (YoY) to £21.1 billion - the unit's highest ever revenue in the first nine months of a financial year. The EBIT margin in the December quarter was positive at 8.8 per cent, more than double in the year-ago period.

The profit before tax was £627 million in the quarter-under-review - JLR’s highest quarterly profit since Q4 FY17. Pricier and margin-boosting JLR cars account for roughly two-thirds of Tata Motors' revenue. The segment caters to an affluent global demographic that is largely unaffected by high inflation. 

JLR increased its EBIT margin guidance for the second straight quarter and now expects the EBIT margin in FY24 to be over eight per cent, compared to the previous guidance of around eight per cent.

‘’The EBIT margin for FY24 is expected to be over eight per cent and we continue to expect operating cashflow to support net debt of less than £1 billion by the end of FY24 and positive net cash in FY25,'' said Tata Motors.

3.Tata Commercial Vehicles (CV) 

Tata Motor's CV's revenue rose 19.2 per cent to 20,123 crore on account of salience towards medium and heavy commercial vehicles and better market operating price. The December quarter witnessed strong EBITDA and EBIT margins of 11.1 per cent (up 270 bps YoY) and 8.6 per cent (up 270 bps YoY) respectively, due to improved pricing, superior mix, and strong realizations. 

Tata Motor's domestic wholesale CV volumes were 91.9K units, marginally higher 1.1 per cent YoY. Exports were at 4.8K units increasing by 14 per cent YoY. On its near-term outlook, Tata Motors expects demand to improve in Q4FY24 across most segments on demand-pull initiatives.

4.Tata Passenger Vehicles (PV)

Tata Motor's PV's revenue rose 10.6 per cent YoY to 12,910 crore. EBIT margins improved by 60 bps YoY to 2.1 per cent on account of cost savings in commodities, offsetting higher fixed expense spends. EV business EBITDA margins pre R&D spends was near breakeven. PV volumes were at 138.6K units (+5 per cent YoY) supported by a strong supply situation, new SUV facelifts, and a robust demand during the festive period. 

5.Other key numbers

Tata Motor's debt to equity ratio dropped 1.58 times in the December quarter compared to 3.68 in the year-ago period. The Earnings per share (EPS) in the quarter-under-review climbed to 18.32 in the last quarter against 7.71 in Q3 of the previous fiscal. Finance costs reduced by 191 crore to 2,485 crore in the December quarter, due to reduction in gross debt during the period.

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First Published:2 Feb 2024, 04:41 PM IST
HomeCompaniesCompany ResultsTata Motors Q3 Results: Net profit surges 137% to ₹7,025 crore, revenue up 25% YoY; 5 key highlights

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