Tata Motors Q1 FY25 Results: During the April-June period, JLR’s revenue increased by 5.4% to GBP 7.3 billion, with EBIT margins rising by 30 basis points to 8.9%.
Tata Motors Ltd reported a 74 percent year-on-year increase in its Q1 FY25 consolidated net profit, reaching Rs 5,566 crore, up from Rs 3,203 crore. This performance exceeded market expectations.
The Mumbai-based automaker noted a 5.7 percent rise in revenue from operations for the April-June period, totaling Rs 1,07,316 crore, compared to Rs 1,01,528 crore the previous year.
Despite a notable 11 percent increase in Tata Motors’ share price over the past week, reaching Rs 1,144.6 on the BSE, the shares fell 1.21 percent on the NSE ahead of the results.
The company’s consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) saw a 19 percent increase to Rs 15,785 crore, with the operating margin expanding to 14.6 percent from 12.9 percent a year ago.
Jaguar Land Rover (JLR), Tata Motors’ luxury division, reported a 5.4 percent rise in revenue for April-June, reaching GBP 7.3 billion. EBIT margins improved by 30 basis points to 8.9 percent, supported by favorable volume, mix, and material cost improvements.
In the domestic market, Commercial Vehicle (CV) revenues grew 5.1 percent year-on-year to Rs 17,800 crore, with EBIT margins improving by 240 basis points to 8.9 percent due to better realizations and material cost savings. Conversely, passenger vehicle revenues fell 7.7 percent due to challenging market conditions, although EBITDA expanded by 50 basis points to 5.8 percent thanks to material cost reductions.
Tata Motors also announced that its proposed demerger into two separate listed entities is expected to be completed in 12 to 15 months. Additionally, the merger of Tata Motors Finance with Tata Capital is anticipated to conclude within 9 to 12 months.
Looking ahead, Tata Motors expects global demand to remain subdued but anticipates a gradual improvement in domestic demand due to continued infrastructure investments, favorable monsoon conditions, and festive season demand. The company also expects commodity prices to remain stable.
