Tata Motors Q2 earnings: Net profit slips 11%, revenue at Rs 1.01 lakh cr

Tata Motors reported a 11% fall in Q2 profit on Friday. Net profit (attributable to shareholders) came at Rs 3343 crore against Rs 3764 crore profit in the September 2023 quarter. Revenue also fell 3.5% to Rs 1.01 lakh crore in the last quarter against Rs 1.05 lakh crore in the September 2023 quarter. Revenue was largely impacted by lower sales volumes. 

Profit before tax slipped to Rs 5767 crore in Q2 against Rs 6035 crore in the September 2023 quarter. Earnings per share slipped to Rs 9.71 per share in Q2 against Rs 9.80 per share in the September 2023 quarter. EBITDA fell 14.2% to Rs 11,736 crore in the September 2023 quarter on a year on year basis. 

Tata Motors also gave out a cautious commentary. "We remain cautious on near-term domestic demand," it said. "However, the festive season and substantial investments in infrastructure should help bolster it," it added.

Revenue from Jaguar Land Rover fell 5.6 percent to £6.5 billion. Tata Motors said "temporary supply constraints" also weighed on profitability. 

EBIT margin of JLR slipped 220 basis points to 5.1 percent. The profitability at JLR was "impacted on account of temporary aluminum supply constraint and a hold placed on 6,029 vehicles for additional quality control checks," said the statement.

Tata Motors' domestic commercial vehicles revenue slipped 13.9 percent to Rs 17,288 crore due to sluggish infrastructure activity, a reduction in mining, and lower fleet utilization amid heavy rains.

"In Q2 FY25, domestic wholesale CV volumes were 79,800 units, lower 19.6 percent on-year, impacted by slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilisation due to heavy rains," said Tata Motors.

Shares of Tata Motors ended lower on Friday. The stock fell 1.72% at Rs 805.70 on BSE. The earnings were announced after market hours.