Tata Motors' consolidated profits fell 11% to Rs 3343 crores in July-September
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utomobile giant Tata Motors reported a consolidated net profit decline of 11.18 per cent to Rs 3,343 crore for the July-September 2024 quarter, according to the company's financial report released on Friday.
The company's revenue dropped by 3.5 per cent year-on-year to Rs 1,01,450 crore, while EBITDA stood at Rs 11,736 crore. The EBITDA margin was recorded at 11.6 per cent, down by 230 basis points for the second quarter.
The revenue decline of 3.5 per cent reflects a challenging second quarter for 2024.
"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 supply challenges ease and demand picks up, we are confident of steady improvement in our performance and delivering a strong H2," said PB Balaji, Group Chief Financial Officer, Tata Motors.
Meanwhile, Jaguar Land Rover (JLR) revenue fell by 5.6 per cent to EUR6.5 billion. JLR's performance was affected by temporary supply constraints, leading to EBITDA margins of 5.1 per cent (down by 220 basis points).
Commercial vehicle (CV) revenues declined by 13.9 per cent, but EBITDA margins improved to 10.8 per cent (up by 40 basis points) due to favourable pricing and material cost savings, despite lower volumes.
Passenger vehicle (PV) revenues for the July-September quarter were down by 3.9 per cent, but EBITDA margins remained steady at 6.2 per cent (down by 30 basis points) due to product mix improvements and cost reduction measures.
"JLR has delivered a resilient performance in Q2, resulting in a 25 per cent increase in first-half profits year-on-year. Our teams responded brilliantly to the aluminium supply shortages we experienced in the quarter, enabling us to deliver as many orders as possible to clients. We continue to make good progress on our Reimagine strategy. We have invested GBP250 million so far to prepare our Halewood UK plant for electric vehicle production. With strong global demand for our products, we are well-positioned to meet our commitments again this financial year," said Adrian Mardell, JLR Chief Executive Officer.
In the second quarter of FY25, domestic wholesale CV volumes stood at 79,800 units, down by 19.6 per cent year-on-year, impacted by slower infrastructure project execution, reduced mining activity, and lower fleet utilisation due to heavy rains.
Exports in the CV segment were 4,400 units, down by 11.1 per cent year-on-year. Revenue for this segment fell by 13.9 per cent year-on-year to Rs 17,300 crore; however, EBITDA margins improved to 10.8 per cent due to savings in commodity costs.
In the passenger vehicle segment, PV volumes reached 130,500 units, down by 6.1 per cent year-on-year, driven by slow consumer demand and seasonal factors, according to the company.
Revenues for Q2 FY25 in the passenger vehicle segment were down by 3.9 per cent year-on-year to Rs 11,700 crore, while EBITDA margins held steady at 6.2 per cent, down by 30 basis points year-on-year, supported by material cost savings and an improved product mix.
✔️ Tata Motors' consolidated profits fell 11% to Rs 3343 crores in July-September
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