Tata Motors' consolidated net profit increased by 222 percent to Rs 17,407.18 crore as a result of enhanced operating leverage, favorable commodity prices, and robust volume growth across all categories. The company's profit after tax (PAT) for the same period previous year was Rs 5,407.79 crore. Revenue from operations climbed by 13 percent to Rs 119,986.31 crore in the current quarter, up from Rs 105,932.35 crore the previous year.
The results outperformed analysts' forecasts, with a credible average predictions of six brokerage firms forecasting a profit of Rs 7,084 crore in the fiscal fourth quarter, up 33% from the same quarter the previous year. According to the same predictions, the motor giant's operating revenue will increase by 15 percent year on year to Rs 1,22,008 crore.
However, Tata Motors stated that domestic demand in the first half of the fiscal year 2024-2025 is projected to be modest. "We remain cautiously optimistic about domestic demand for the full year, but expect H1 to be significantly weaker. Despite growing concerns about overall demand, the premium luxury market is expected to remain resilient. Despite this, we are confident in our ability to deliver a great result in Fiscal Year 25," it stated.
The automaker's board also recommended a final dividend of Rs 6 per Ordinary Share and Rs 6.20 per 'A' Ordinary Share for the fiscal year ending March 31, 2024.
P.B. Balaji, Tata Motors' Group Chief Financial Officer, stated, "It is great to share the FY24 results, during which the Tata Motors Group achieved its best ever revenues, profitability, and free cash flows. The India business is now debt-free, and we are on target to be net automotive debt-free on a consolidated basis by FY25. The businesses are performing well on their respective strategies, therefore we are confident in maintaining this solid success in the next years."
Tata Motors said last week that its total wholesales increased by 11.5 percent year on year to 77,521 units in April 2024, up from 69,599 units in April 2023. The automaker's overall domestic dispatches increased 12 percent to 76,399 units last month, up from 68,514 units in April 2023, according to a statement.
Tata Motors forecasts JLR's earnings before interest and taxes (EBIT) margins in fiscal 2025 to be similar to the 8.5 percent achieved in the previous fiscal year. JLR's earnings before interest and taxes (EBIT) margin was 9.2% for the quarter. Tata Motors' Jaguar Land Rover (JLR) unit maintained its solid financial performance throughout the fiscal year, with another record-breaking quarter in Q4 FY24.
Revenue for the quarter was £7.9 billion, increasing 11% from Q4 FY23 and 6% from Q3 FY24. Revenues for FY24 were £29.0 billion, JLR's greatest ever full-year revenue and a 27 percent increase over the previous year.
The company anticipates healthy demand for passenger automobiles, but the combination of a high base effect and external events like elections and heat waves may limit development. The company aims to achieve market-leading growth in retail to maintain double-digit EBITDA margins and positive free cash flows in the PV industry.
