More Stories

Informist, Wednesday, Jan. 29, 2025

 

Please click here to read all liners published on this story

--Tata Motors Oct-Dec consol net profit INR 54.51 bln 
--Analysts saw Tata Motors Oct-Dec consol net profit INR 64.02 bln
--Tata Motors Oct-Dec consol PAT INR 54.51 bln vs INR 70.25 bln year ago 
--Tata Motors Oct-Dec consol revenue INR 1.136 tln vs INR 1.106 tln year ago 
--Tata Motors Apr-Dec consol revenue INR 3.231 tln vs INR 3.179 tln yr ago 
--Tata Motors Apr-Dec consol PAT INR 143.62 bln vs INR 139.92 bln year ago 
--Tata Motors Oct-Dec Tata PV revenue INR 123.54 bln, down 4.3% on year 
--Tata Motors Oct-Dec Tata CV revenue INR 184.31 bln, down 8.4% on year 
--Tata Motors Oct-Dec JLR revenue INR 821.63 bln vs INR 766.55 bln year ago 
--Tata Motors Oct-Dec consol operating margin 11.81% vs 13.95% year ago 
--Tata Motors: Govt's focus on infra spends key aspect to watch out in 2025 
--Tata Motors:Co watchful of overall demand situation, particularly in China 
--Tata Motors: JLR wholesales seen improving further in Jan-Mar 
--Tata Motors: See domestic demand improving on stable interest rates 
--Tata Motors: See domestic demand improving on infra spends, pdt launches 
--Tata Motors: See gradual improvement in demand going forward 
--Tata Motors:To intensify cost reduction measures for enhanced profitability 
--Tata Motors:Oct-Dec customer demand recovered on festivities, yr-end demand 
--Tata Motors: Reduced channel inventory sharply to less than 25 days Oct-Dec 
--Tata Motors cuts JLR FY25 sales guidance to 29 bln sterling 
--Tata Motors: JLR FY25 EBIT margin guidance at or over 8.5% 
--Tata Motors Oct-Dec JLR EBITDA margin 14.2%, down 200 bps on year 
--Tata Motors Oct-Dec Tata PV EBITDA margin 7.8%, up 120 bps on year 
--Tata Motors Oct-Dec Tata CV EBITDA margin 12.4%, up 130 bps on year 
--Tata Motors: Oct-Dec JLR EBIT margin 9.0%, up 20 bps on year 
--Tata Motors: Tata PV EBIT margin 1.7% in Oct-Dec, down 40 bps on year 
--Tata Motors: Tata CV EBIT margin 9.6% in Oct-Dec, up 100 bps on year 
--Tata Motors: Expect Tata CV demand to improve across segments in Jan-Mar 
--Tata Motors: On track to achieve JLR profitability, cash flow targets FY25 

 

By Narayana Krishna

 

HYDERABAD - Weak operating margins and a fall in commercial and passenger vehicle sales dragged down Tata Motors Ltd.'s December quarter consolidated net profit by 22% on year to INR 54.51 billion, missing analysts' estimate of INR 64.02 billion. This is the second straight quarter when the company's net profit has declined on year. The fall in profits is worse than the September quarter when the net profit had declined 11% on year.

 

The company reported a consolidated revenue of INR 1.136 trillion during the December quarter, up 3% on year, led by its luxury car arm Jaguar and Land Rover Plc. In terms of sales, the company was able to recover from the dismal performance in the September quarter, when its sales fell 4%. Sequentially, its net profit rose 63% and revenue grew 12%.

 

Tata Motors' passenger vehicle sales for the quarter declined by 4.3% on year to INR 123.5 billion, while commercial vehicle sales fell 8.4% on year to INR 184.3 billion. The JLR revenue for the December quarter rose nearly 7% on year to INR 821.6 billion.

 

"We expect underlying domestic demand to improve gradually on account of infrastructure spends, slew of exciting product launches and stable interest rates. While JLR wholesales are expected to improve further in Q4 FY25 (Jan-Mar), we remain watchful on the overall demand situation, particularly in China," Tata Motors said in a release.

 

Tata Motors reported operating margins of 11.81% for the quarter, down from 13.95% a year ago.  More

 

Tata Motors said the company is confident of improvement in CV demand across segments in Jan-Mar. "The key aspects to watch out in 2025 will be government's focus on infrastructure spend, and growth in end-use segments, which will augur well for the commercial vehicles industry. We continue to drive actions to reduce the impact of cyclicality in our results and deliver strong margins," the company said.

 

The company said the demand in Oct-Dec recovered due to festivals and the year-end rush and expects gradual improvement going forward. Tata Motors said the company reduced channel inventory sharply to less than 25 days in the December quarter and intensified cost reduction measures to improve profitability.

 

The company introduced over 50 product variants in its CV segment during the quarter, Tata Motors said, adding that work is underway to improve the small commercial vehicles segment sales going forward.

 

MARGINS

Tata Motors earnings before interest, tax, depreciation and amortisation or EBITDA margin for the passenger vehicles segment rose 120 basis points on year to 7.8% in Oct-Dec, while EBIT margin for the segment fell 40 bps on year to 1.7%. The commercial vehicles segment EBITDA margin rose by 130 bps on year to 12.4%, while EBIT margin increased 100 bps on year to 9.6%. The JLR EBITDA margin declined 200 bps on year to 14.2%, while EBIT margins rose 20 bps on year to 9.0%.

 

The company's finance costs for the quarter declined 30.6% on year to INR 17.3 billion led by reduction in gross debt, the company said. The company's total expenses rose 3% on year to INR 1.08 trillion. The raw material costs fell by nearly 5% on year to INR 608.0 billion.

 

GUIDANCE

Given the trends in Apr-Dec, the passenger vehicle segment growth in the current financial is poised for moderate growth, the company. "Segment shifts in the industry are likely to continue with strong growth in the SUV (sports utility vehicle) segment, and continued traction for emission-friendly powertrains. With multiple product launches, innovations and a strengthened multi-powertrain strategy, Tata Motors is well poised for further growth in 2025," the company said.

 

Tata Motors reduced the guidance for JLR sales in FY25 to 29 billion sterling from 30 billion sterling earlier. The company projected JLR's EBIT margin in FY25 at over 8.5%. "Looking ahead, while mindful of the challenging economic backdrop, the company is on track to achieve its profitability and cash flow targets in FY25, with EBIT margin over 8.5% and positive net cash," Tata Motors said. The company is planning to launch Range Rover Electric later this year, the company said.

 

Tata Motors' net profit in Apr-Dec rose 2.6% on year to 143.62 billion, while revenue increased 1.6% on year to INR 3.231 trillion.

 

On Wednesday, shares of Tata Motors ended at INR 752.50 on the National Stock Exchange, up 3.3% from its previous close. The company announced its results after market hours. End

 

US$1 = INR 86.54

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.