Mumbai, August 1, 2024 – Tata Motors Ltd. (TML) has released its financial results for the first quarter of fiscal year 2025, showcasing robust performance despite various market dynamics. The company reported consolidated revenues of ₹108,000 crore, a 5.7% increase year-over-year, with an EBITDA of ₹15,600 crore, up by 6.0%. Pre-tax profit before exceptional items surged by ₹3,300 crore to ₹8,800 crore.
Key Highlights:
Jaguar Land Rover (JLR):
- JLR achieved its highest Q1 revenue on record at £7.3 billion, marking a 5.4% year-over-year increase.
- The EBITDA margin stood at 15.8%, a slight decline of 50 basis points, while the EBIT margin improved to 8.9%, up by 30 basis points.
- Free cash flow for the quarter was £230 million, and the net debt was reduced to £1.0 billion.
Tata Commercial Vehicles (CV):
- Revenue rose by 5.1% to ₹17,800 crore, with an improved EBITDA margin of 11.6% and EBIT margin of 8.9%.
- Domestic sales volumes grew by 6.7%, driven by increased demand in the medium and heavy commercial vehicle segments.
Tata Passenger Vehicles (PV):
- Despite a 7.7% decline in revenue to ₹11,800 crore, the EBITDA margin improved by 50 basis points to 5.8%.
- The EBIT margin fell to 0.3%, and the segment’s wholesale volumes were slightly down by 1.1%.
Strategic Moves and Market Outlook
Tata Motors announced significant corporate actions, including the demerger of its business into two separate listed entities and the ongoing merger of Tata Motors Finance with Tata Capital. These moves are expected to conclude within the next 12 to 15 months, pending necessary approvals.
Looking Ahead:
- Global demand is anticipated to remain subdued, with a gradual improvement in domestic demand driven by infrastructure investments, favorable monsoon conditions, and festive season demand.
- The company expects commodity prices to stay within a stable range, providing some cost predictability.
PB Balaji, Group Chief Financial Officer of Tata Motors, expressed confidence in sustaining the company’s performance in the coming quarters, leveraging distinctive business strategies across its various segments.
Jaguar Land Rover’s Transformation:
- JLR continues its “Reimagine” strategy, increasing its investment to £18 billion over five years.
- The company is focusing on electrification, with the new Range Rover Electric generating strong global interest and significant advancements in digital skills training for employees and retail partners.
Tata Commercial Vehicles:
- The CV segment is set to benefit from ongoing government infrastructure projects, a healthy monsoon, and continued demand in key segments like e-commerce and auto-aggregates.
Tata Passenger Vehicles:
- The PV segment is optimistic about a demand uptick during the festive season, with new product launches such as the Tata Curvv expected to boost sales. The segment aims to enhance profitability through improved scale, mix optimization, and cost efficiency.
Girish Wagh, Executive Director of Tata Motors, and Shailesh Chandra, Managing Director of Tata Passenger Vehicles, highlighted the positive market sentiment and the company’s strategic initiatives to drive growth and maintain competitiveness.
Financial Commentary
Finance Costs:
- Finance costs decreased by ₹527 crore to ₹2,088 crore, reflecting reduced gross debt.
Joint Ventures and Other Income:
- Net profit from joint ventures and associates stood at ₹129 crore, compared to ₹211 crore in Q1 FY24. Other income, excluding grants, increased to ₹833 crore from ₹677 crore.
Free Cash Flow:
- The automotive segment reported positive free cash flow of ₹1,200 crore, driven by strong cash profits, despite seasonal impacts. Net automotive debt was reduced to ₹18,600 crore.
Tata Motors remains focused on executing its strategic initiatives, driving innovation, and maintaining robust financial health to navigate the evolving market landscape and deliver sustained performance.
| Q1 FY25 | Consolidated (₹ Cr Ind AS) | Jaguar Land Rover (£m, IFRS) | Tata Commercial Vehicles (₹Cr, Ind AS) | Tata Passenger Vehicles (₹Cr, Ind AS) | |||||||
| FY25 | Vs. PY | FY25 | Vs. PY | FY25 | Vs. PY | FY25 | Vs. PY | ||||
| Revenue | 108,048 | 5.7% | 7,273 | 5.4% | 17,849 | 5.1% | 11,847 | (7.7)% | |||
| EBITDA (%) | 14.4 | – | 15.8 | (50) bps | 11.6 | 220 bps | 5.8 | 50 bps | |||
| EBIT (%) | 8.4 | 30 bps | 8.9 | 30 bps | 8.9 | 240 bps | 0.3 | (70) bps | |||
| PBT (bei) | 8,828 | ₹3,287crs | 693 | £258m | 1,535 | ₹598 crs | 173 | ₹(13) crs | |||
