Analyst Concall
Tata Motors expects demerger of ops to be effective by Oct
This story was originally published at 21:01 IST on 29 January 2025
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--Tata Motors: Demerger of ops on track, expect to complete process by Oct
--CONTEXT: Tata Motors management comments in post-earnings analyst call
--Tata Motors: Waiting for final order from NCLT on demerger
--Tata Motors: Received eligibility certificate for productivity-linked sops
--Tata Motors: JLR ops in China remain resilient despite macro headwinds
--Tata Motors: Jaguar's new electric model to be unveiled in late 2025
--Tata Motors: Electric vehicle industry saw 23% YoY growth in Oct-Dec
--Tata Motors: Will look to improve retail sales in China in FY26
--Tata Motors: To launch new variant of Curvv model
--Tata Motors: Investments in EVs supported by production-linked sops
--Tata Motors: To come up with products with multi-fuel aspects
--Tata Motors: Seeing green shoots in premium vehicles segment in Europe
--Tata Motors: Jan-Mar expected to set good base for FY26 sales growth
By Narayan Krishna and Gopika Balasubramanium
HYDERABAD/MUMBAI - Tata Motors Ltd. on Wednesday said that the company's plan to demerge its passenger vehicle business into a separate entity is very much on track, and it expects it to be effective from October. The company is expecting approvals from various regulatory authorities shortly and a final order from the National Company Law Tribunal is also awaited, the company's management said at a post-earnings analysts' call.
The automobile company's demerger plan is aimed at separating the passenger vehicles business, including electric vehicles, into a separate entity to unlock value and provide financial flexibility to both passenger and commercial vehicle businesses. Tata Motors' passenger vehicles segment houses popular brands like Nexon, Punch, and Harrier, which have seen significant demand in recent years.
Tata Motors on Wednesday reported a consolidated net profit of INR 54.51 billion, down 22% on year, missing the consensus estimates. The company's revenue for the latest quarter stood at INR 1.136 trillion, up 3% on year.
Tata Motors has received an eligibility certificate for the production-linked incentives scheme and recognised INR 3.51 billion during the December quarter, the management said. The PLI scheme is an important part of the investments that the company is making in various segments including electric vehicles, the company said.
The company management said JLR operations in China remained resilient despite macro headwinds and the company was cautiously optimistic about next year. Tata Motors will focus on improving the retail sales in China in FY26, the management said.
Tata Motors said it is working on launching a new variant of its newly launched Curvv car in Jan-Mar. The company said it could not fully leverage the benefits of the Curvv model as it has faced some supply-side challenges. The company has resolved the challenges now, it said.
Tata Motors will unveil Jaguar's electric vehicle version during the later part of 2025 and a few other models of JLR with multiple fuel options are also lined up for next financial year. The company said there were some signs of demand recovery for premium and luxury cars in Europe in recent weeks, though the company is not expecting large volume growth.
Tata Motors expects the Jan-Mar quarter to be good for the heavy commercial vehicles segment, which is expected to set a good base for sales growth in FY26. Expressing confidence in the penetration of the electric vehicles segment going forward, the company said the new electric vehicle registration in the industry has grown 23% in the December quarter.
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 the December quarter earnings after market hours. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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