Tata Motors Q2 FY24 results show EBITDA surge by 86.4%, positive outlook for H2

Tata Motors Limited (TML) has released its Q2 FY24 financial results, showcasing a robust increase in revenue to ₹105.1K Cr, marking a 32.1% year-over-year growth. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) saw an 86.4% increase to ₹14.4K Cr, with profit before tax (bei) surging by ₹7.9K Cr to ₹6.1K Cr. The automotive giant recorded a noteworthy ₹3.9K Cr in automotive free cash flows, showing a substantial increment compared to the previous year.

Jaguar Land Rover’s Notable Contribution to Tata Motors’ Q2 Success

Jaguar Land Rover (JLR), a subsidiary of Tata Motors, contributed significantly to the quarter’s success, with its revenue climbing by 30.4% to £6.9b. Improved sales and product mix propelled the EBIT margin to 7.3%, reflecting an impressive 630 basis points enhancement.

Tata Commercial and Passenger Vehicles: A Detailed Financial Review

The commercial vehicle sector of Tata Motors also displayed strong performance metrics, with revenues ascending by 22.3% to ₹20.1K Cr and an EBIT margin increase of 560 basis points to 7.9%. Conversely, the passenger vehicle segment experienced a slight decline in revenue by 3.0%, yet managed to improve EBIT margin by 140 basis points to 1.8%, courtesy of commodity cost savings.

Looking into the future, Tata Motors remains optimistic, citing a robust order book for JLR, strong demand for commercial vehicles, and promising new passenger vehicle products. The company forecasts a continuation of this upward trajectory in the second half of the financial year, driven by a potent mix of product offerings and strategic business maneuvers.

Group CFO PB Balaji expressed confidence in the company’s direction, stating, “It is pleasing to see all the businesses deliver on their well-differentiated plans this quarter. With a strong product pipeline, a seasonally stronger H2, and continued focus on cash accretive growth, we are confident of sustaining this momentum.” These results and the positive outlook anticipate a favorable market response as Tata Motors continues to navigate the automotive industry landscape with strategic agility.