Auto giant records net profit of Rs 3,202 crore

Tata Motors on Tuesday recorded a consolidated net profit of Rs 3,202.2 crore in the quarter that ended on June 30 as compared to a loss of Rs 5,006.6 crore in the same quarter last year. As compared to Rs 5,407.79 crore in the quarter that ended on March 31, the net profit was down 40.7 per cent.  

The revenue from operations for the quarter at Rs 1.01 trillion was up 42.6 per cent as compared to Rs 71,227.76 crore in the same quarter last year. Sequentially, the revenue from operations was down 3.3 per cent from Rs 1,05,016.7 crore.

The revenue from Jaguar Land Rover (JLR) improved by 57 per cent to 6.9 billion pounds on strong wholesale demand and improved mix. It resulted in a 1,300 basis points (bps) rise in the earnings before interest and taxes (Ebit) margins to 8.6 per cent.

The commercial vehicle volumes were lower by 15 per cent over the prior year due to the transition to BS-VI Phase 2. However, the Ebit margins improved to 6.5 per cent (+370bps) benefiting from the “demand-pull strategy and richer mix”.

The passenger vehicle (PV) business saw an 11.1 per cent revenue growth.

“We aim to deliver a strong performance in the rest of the year too, thanks to a healthy order book coupled with low-break-even in JLR, a steady improvement in demand whilst we continue to drive our demand-pull strategy in CV, a set of exciting launches ahead of the festive season in PV and continued aggression in EVs,” the company said in its release.

PB Balaji, group chief financial officer at Tata Motors said, “2023-24 has begun on the right note with all automotive verticals delivering strong performances. The distinct strategy employed by each business is now delivering consistent results and making them structurally stronger. We remain confident of sustaining this momentum for the rest of the year and achieving our stated goals.”