Tata Motors Q3 FY24 Results: Exceeding Expectations with Soaring Profits

Tata Motors, India’s premier automotive manufacturer, has outperformed market expectations in its Q3 FY24 results, showcasing an impressive more than two-fold increase in net profit. The stellar performance is attributed to robust sales from its British luxury car subsidiary, Jaguar Land Rover (JLR). The consolidated net profit surged by 137.5%, reaching ₹7,025.11 crore, compared to ₹2,958 crore in the corresponding period last year.

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Key Highlights:

1. Revenue and Operating Performance:
   • Total revenue from operations in Q3 witnessed a remarkable 25% rise, reaching ₹110,577 crore, fueled by a 27% growth in JLR sales.
   • Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 59% to ₹15,333 crore, with an EBITDA margin of 13.9%, up 300 basis points (bps) from the previous year.
2. JLR Q3 Scorecard:
   • JLR’s revenue in the December quarter increased by 22% to £7.4 billion, achieving its highest-ever revenue in the first nine months of a financial year.
   • Positive EBIT margin at 8.8% and profit before tax of £627 million marked JLR’s highest quarterly profit since Q4 FY17.
   • The EBIT margin guidance for FY24 was revised upwards to over eight percent.
3. Tata Commercial Vehicles (CV):
   • CV revenue rose by 19.2% to ₹20,123 crore, driven by a focus on medium and heavy commercial vehicles.
   • Strong EBITDA and EBIT margins of 11.1% and 8.6%, respectively, were recorded due to improved pricing, superior mix, and strong realizations.
4. Tata Passenger Vehicles (PV):
   • PV revenue increased by 10.6% YoY to ₹12,910 crore, with EBIT margins improving by 60 bps YoY to 2.1%.
   • Robust demand, new SUV facelifts, and strong supply supported PV volumes, reaching 138.6K units.
5. Other Key Numbers:
   • Debt to equity ratio dropped to 1.58 times in Q3, compared to 3.68 in the previous year.
   • Earnings per share (EPS) climbed to ₹18.32, showcasing a substantial increase from ₹7.71 in Q3 of the previous fiscal.
   • Finance costs reduced by ₹191 crore to ₹2,485 crore due to a reduction in gross debt.

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Conclusion: Tata Motors’ Q3 FY24 results underscore its resilience and strategic prowess, especially with the stellar performance of Jaguar Land Rover. The robust financials across commercial and passenger vehicle segments reflect the company’s adept management and ability to navigate challenges. As Tata Motors continues on its growth trajectory, these results mark a significant milestone and instill confidence in its stakeholders and investors.

Note: All financial figures are in INR unless specified otherwise.