Tata Motors Ltd. reported first quarter consolidated net profit grew 74% to ₹5,566 crore from ₹3,203 crore in the year ago period.
Consolidated revenue for the quarter ended June 30 grew 5.7% to ₹108,048 crore Year on Year (YoY).
Jaguar Land Rover (JLR) revenue grew by 5.4% to £7,273 million with EBIT margins of 8.9% (+30 bps) driven by favourable volume, mix and material cost improvements, the company said in a filing.
The company’s Commercial Vehicles (CV) business reported revenues of ₹17,849 crore, up 5.1% and EBIT margins improved to 8.9% (up 240 bps) benefiting from better realisations and material cost savings.
The revenues of the Passenger Vehicles (PV) business declined by 7.7% to ₹11,847 crore, reflecting the challenging market conditions but EBITDA at 5.8% was up 50 bps driven by material cost reductions.
PB Balaji, Group Chief Financial Officer, Tata Motors briefing over a conference call said, “The first quarter has carried forward the momentum of last year with all businesses continuing to deliver on their distinctive strategies. We are confident of sustaining the performance in the coming quarters and delivering a strong year.”
Stating that the market for PVs had subdued in July, he said that the segment would grow in the coming quarters with new product introduction and festive demand.
The company’s Board on Thursday approved the Scheme of Demerger of Tata Motors into two separate listed companies namely Tata Motors Ltd housing the CV business and Tata Motors Passenger Vehicles Ltd housing the Passenger Vehicle business, the Electric Vehicle (TPEM) business, JLR and their related investments. The demerger is expected to conclude in the next 12 to 15 months.
On the outlook the company said global demand is likely to remain muted and it expects gradual improvement in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favourable macros and festive demand. “Commodities are likely to remain range bound,” it added.
In FY25 the company is making a capital investment of ₹35,000 crore in JLR and ₹8,000 crore in the India business. Mr Balaji said that the company would become debt free this year as planned.
Published - August 01, 2024 09:04 pm IST
