Tata Motors Q1 FY25 profit soars 74% to ₹5,566 Crore

2 Aug 2024 , 03:30 PM

Tata Motors Ltd reported a significant 74% year-on-year increase in its Q1 FY25 consolidated net profit, reaching ₹5,566 Crore, up from ₹3,203 Crore, surpassing market expectations. The company’s April-June revenue from operations rose by 5.7% to ₹1,07,316 Crore, compared to ₹1,01,528 Crore a year ago. 

Tata Motors’ shares have seen a substantial rise over the past week, gaining over 11% to ₹1,144.6 apiece on the BSE, although they declined 1.21% on the NSE ahead of the results announcement. The automaker’s consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 19% year-on-year to ₹15,785 Crore, with an operating margin expansion to 14.6% from 12.9% in the same period last year.

At the time of writing on August 02, 2024 at 3:26 pm, shares of Tata Motors is trading at ₹1096 which is a 4.23% gain than the previous close. Tata Motors stock has gained a total of 76% in the last one year, and 38% since the beginning of the year.

Jaguar Land Rover (JLR), Tata Motors’ luxury arm, reported a 5.4% increase in revenue during April-June, reaching GBP 7.3 billion, with EBIT margins improving to 8.9%, up 30 basis points. This growth was driven by favorable volume, mix, and material cost improvements.

In the domestic market, Tata Motors’ Commercial Vehicle (CV) revenues grew by 5.1% year-on-year to ₹17,800 Crore, with EBIT margins improving by 240 basis points to 8.9%. The margin improvement was attributed to better realizations and material cost savings. However, the passenger vehicle revenues fell by 7.7%, reflecting challenging market conditions. Despite this, the passenger vehicle segment’s EBITDA expanded by 50 basis points to 5.8%, driven by material cost reductions.

Tata Motors announced that the proposed demerger of the company into two separate listed entities is expected to be completed within 12 to 15 months. Additionally, the merger of Tata Motors Finance with Tata Capital is underway and is anticipated to conclude within the next 9 to 12 months.