Tata Motors Ltd. announced its consolidated financial results for the quarter ending September 30, 2024, reporting revenue of ₹101,450 crore, down 3.5% year-on-year. The automotive giant recorded an EBITDA of ₹11,600 crore (11.4% margin, down 230 basis points) and an EBIT of ₹5,600 crore (5.6% margin, down 190 bps). Profit before tax (before exceptional items) stood at ₹5,768 crore, a dip of ₹391 crore from last year’s Q2.
Jaguar Land Rover (JLR)
Jaguar Land Rover, a subsidiary of Tata Motors, faced temporary supply chain disruptions, notably an aluminum shortage, contributing to a 5.6% drop in quarterly revenue to £6.5 billion. The EBITDA margin declined by 320 bps to 11.7%, and the EBIT margin fell by 220 bps to 5.1%. However, JLR expects a strong recovery in H2, with projected improvements in production and wholesale volumes as supply issues ease.
Tata Commercial Vehicles (Tata CV)
Revenue for Tata Commercial Vehicles dropped by 13.9% to ₹17,288 crore due to lower volumes impacted by infrastructure project slowdowns, reduced mining activity, and adverse weather. Despite the revenue dip, the EBITDA margin improved by 40 bps to 10.8%, supported by favorable pricing and material cost savings.
Tata Passenger Vehicles (Tata PV)
Passenger vehicle revenue saw a moderate decline of 3.9% to ₹11,700 crore, with an EBITDA margin of 6.2% (down 30 bps). The business achieved strong EV market leadership, holding a 65% market share in the EV personal segment, while EV penetration grew to 12%. Tata PV’s recent model launches, including the Tata Curvv and Curvv.ev, which received Bharat NCAP 5-star safety ratings, have generated substantial consumer interest.
Strategic Outlook for H2 FY25
Looking ahead, Tata Motors remains optimistic for a recovery in demand, buoyed by the festive season and rising infrastructure investments. The company is poised to become net debt-free by year-end and expects improved performance across segments in H2 FY25.
“Tata Motors delivered a resilient performance amidst significant external challenges. We remain confident of steady improvement and a robust second half,” said PB Balaji, Group CFO of Tata Motors.
As Tata Motors focuses on driving growth, operational efficiency, and free cash flow, the company’s strategic initiatives and continued cost management efforts underscore its commitment to long-term success amidst a competitive market.
