Tata Motors on Friday reported a 45.67 per cent year-on-year (YoY) rise in consolidated net profit at Rs 17,529 crore for the March quarter compared with Rs 12,033 crore in the same quarter last year. The consolidated sales for the quarter stood at Rs 1,19,986 crore, up 13.3 per cent, the JLR owner said in a BSE filing. Ebitda margin for the quarter came in at 14.9 per cent, up 160 basis points YoY.
Net automotive debt reduced further to Rs 16,000 crore, the Tata group firm said.
H1 to be relatively weaker
Tata Motors said it remains cautiously optimistic on domestic demand over the full year and expects H1 to be relatively weaker. The premium luxury segment demand, it said, is likely to remain resilient despite emerging concerns on overall demand.
Overall, the firm remains confident of delivering a strong performance in FY25.
JLR: Focus on brand activation
In the case of JLR, Tata Motors said it would continue to focus on brand activation to maintain order book. It expects EBIT margins in FY25 to be around the FY24 level. The British arm of the auto giant anticipated a modest increase in investment spend at £3.5 billion but still expects to become net debt zero during FY25.
Tata Motors CFO speaks
Group Chief Financial Officer PB Balaji, Tata Motors said: “It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows. The India business is now debt free, and we are on track to become net automotive debt free on a consolidated basis in FY25."
Balaji said Tata Motors' businesses are executing well on their distinct strategies and therefore, the auto major is confident of sustaining this strong performance in the coming years.
JLR profit jumps on high volumes, fall in RM cost
In the case of JLR, revenue for the quarter stood at £7.9 billion, up 11 per cent YoY or 6 per cent QoQ.
"PBT in Q4 was £661 million (£293 million YoY) and EBIT margin was 9.2 per cent in Q4, (up 270 bps YoY). The higher profitability YoY reflects increased volumes and reduced material costs, offset partially by increased marketing spend compared to a year ago. Profit after tax in Q4 was £1.4 billion vs a profit of £259 million in the same quarter a year ago. PBT for FY24 was £2.2 billion – the highest since FY15; and PAT for FY24 was £2.6 billion. PAT also factors in the recognition of a deferred tax asset (DTA) of £1.0 billion due to a reassessment of future recoverability tax losses and allowances," Tata Motors said.
JLR said free cash flow for the quarter stood at £892 million and £2.3 billion for the full year, the highest ever full year cash flow. The year ended with a cash balance was £4.2 billion and net debt £0.7 billion and a total liquidity was £5.7 billion, including the £1.5 billion undrawn revolving credit facility maturing April 1, 2026.
Record financial performance, says JLR CEO JLR Chief Executive Officer, Adrian Mardell, said: “This has been a year of great strategic progress at JLR and I would like to thank our clients, our people, our suppliers and partners for their role in our success. We have delivered a record financial performance for the company, generating free cashflow of £2.3 billion, enabling us to reduce net debt to £0.7 billion"
"The foundation of this performance was the sustained global demand for our modern luxury vehicles, led by our Range Rover and Defender brands, underpinned by a consistent focus on operational improvement. We are entering the next exciting phase of our Reimagine strategy which will see us bring to life our modern luxury electric vehicles and deliver an accompanying modern luxury experience for our clients, ensuring we continue to vigorously address the challenges we have encountered in 2024,” Mardell said.
Tata Motors FY24 dividend
The Tata Motors board recommended a final dividend of Rs 3 per ordinary share and Rs 3.10 per A ordinary share and a special dividend of Rs 3/- per ordinary share and Rs 3.10 per A ordinary share, subject to approval by the shareholders.