Tata Motors Ltd. (TML), a leading global automotive manufacturing company, has announced a robust performance for the quarter ending December 31, 2023.

The company’s consolidated revenue saw a significant increase of 25.0%, reaching ₹110.6K Cr, while EBITDA surged by 60.6% to ₹15.8K Cr. Profit Before Tax (PBT) experienced a remarkable rise, with a ₹4.4K Cr increase to ₹7.6K Cr compared to the previous year (PY). Notably, the automotive sector’s free cash flows were also up, showing a ₹1.1K Cr increase versus PY.

Jaguar Land Rover (JLR), a subsidiary of Tata Motors, reported a 22% increase in revenue to £7.4b, with EBITDA and EBIT margins rising significantly, highlighting the brand’s successful quarter. Tata Commercial Vehicles (CV) and Tata Passenger Vehicles (PV) also reported positive growth, with revenues up by 19.2% and 10.6% respectively.

In-Depth Analysis of Tata Motors’ Financials

Consolidated Performance

TML’s consolidated financials for Q3 FY24 are impressive, with a total revenue of ₹110.6K Cr, marking a 25.0% increase from the previous year. The EBITDA percentage rose to 14.3%, up by 320 basis points, showcasing operational efficiency and profitability.

Jaguar Land Rover’s Strong Quarter

JLR’s revenue stood at £7.4 billion, up 22% year-over-year. The luxury car brand’s EBITDA reached 16.2%, and EBIT at 8.8%, reflecting improved wholesales and reduced material costs.

Tata Commercial Vehicles

The segment reported a 19.2% revenue increase to ₹20.1K Cr, with EBITDA and EBIT margins showing substantial improvements, benefiting from higher realizations and a richer mix.

Tata Passenger Vehicles

Despite a slight dip in EBITDA margins, the PV segment’s revenue grew by 10.6% to ₹12.9K Cr, with improved EBIT margins driven by savings in commodity costs.

Looking Ahead: Positive Outlook for Tata Motors

Tata Motors remains optimistic about its automotive businesses, expecting further improvement in Q4. The company has successfully reduced net automotive debt to ₹29.2K Cr and remains confident in its deleveraging plans.

PB Balaji, Group CFO of Tata Motors, commented on the quarter’s success, highlighting the company’s consistent performance over six quarters and its focus on ending the year strongly.

JLR’s Transformation and Future Prospects

JLR’s record revenues for Q3 FY24 and the year-to-date underline the brand’s successful product offerings and strategic initiatives. The upcoming Range Rover Electric has already generated significant interest, and JLR continues to invest in electrification and sustainability, aiming for positive net cash in FY25.

Tata Commercial and Passenger Vehicles: Continued Growth and Innovation

Both commercial and passenger vehicle segments of Tata Motors have shown resilience and growth, with a focus on improving market share, innovation, and sustainability. The company is set to introduce new products and further expand its electric vehicle (EV) portfolio, supporting a green and smart future for mobility.

Tata Motors’ Strategic Execution Yields Strong Results

Tata Motors’ Q3 FY24 results reflect the company’s effective execution of its strategies across all business segments. With a focus on innovation, sustainability, and financial health, Tata Motors is well-positioned for continued growth and success in the competitive automotive industry.

  India, PB Balaji, Tata Motors