Tata Motors PAT at INR 17,528.59 cr in Q4 FY24

New Delhi: Tata Motors on Friday reported a three-fold growth in its consolidated net profit to INR 17,528.59 crore for the quarter ended March 2024. The company had reported PAT at INR 5,496.04 crore during the corresponding period of last year.

Total revenue from operations was up at INR 119,986.31 crore in Q4 FY24, as against INR 105,932.35 crore in Q4 FY23.

PB Balaji, Group Chief Financial Officer, Tata Motors said, “It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows. The India business is now debt free, and we are on track to become net automotive debt free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years.”

The Board of Directors have recommended a final dividend of INR 3 per Ordinary Share and INR 3.10 per A Ordinary Share and a special dividend of INR 3 per Ordinary Share and INR 3.10 per A Ordinary Share subject to approval by the shareholders, the company said in a regulatory filing.

Talking about the outlook, Tata Motors said, “We remain cautiously optimistic on domestic demand over the full year and expect H1 to be relatively weaker. The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. Despite this, we are confident of delivering a strong performance in FY25.”

PV Businsess

In Q4, Tata Motors PV volumes were at 155.6K units (+14.8% Y-o-Y)supported by new SUV facelifts and multiple power trains. EBIT margins improved by 150 bps Y-o-Y to 2.9% owing to operating leverage on improved volumes and savings in commodity costs.

Shailesh Chandra, Managing Director TMPV and TPEM said, “Tata Motors recorded its third consecutive year of highest sales volumes with 6% growth in wholesales and 10% in retail sales over FY23. Our multi-powertrain approach and sharp focus on green technologies increased the penetration of CNG and electric vehicles to 29% in the overall portfolio.

Going forward, the maker of Nexon expect the demand for passenger cars to remain strong, although the high base effect, coupled with extraneous factors elections, heat wave, etc. may keep the growth rate moderate.

“We will continue to focus on retails and deliver market beating growth to sustain double digit EBITDA margins and positive free cash flowsfor PV business. We will continue to proactively drive EV penetration through new product launches and ecosystem development and improve profitability,” it said.

JLR Business

Tata Motors said it will continue to focus on brand activation to maintain order books. “We expect EBIT margins in FY25 to be around the FY24 level. We anticipate a modest increase in investment spend to £3.5b but still expect to become net debt zero during FY25.”

Adrian Mardell, JLR Chief Executive Officer, said the company has delivered a record financial performance generating free cashflow of £2.3 billion, enabling us to reduce net debt to £0.7 billion. This was led by its Range Rover and Defender brands

“We are entering the next exciting phase of our Reimagine strategy which will see us bring to life our modern luxury electric vehicles and deliver an accompanying modern luxury experience for our clients, ensuring we continue to vigorously address the challenges we have encountered in 2024,” Mardell said.

CV Business

In Q4 FY24, Tata Motors domestic wholesale CV volumes were 104.6K units, lower 7% Y-o-Y on account of increased pre-buy in Q4 FY23 due to BS6 Phase-II transition. Exports were at 4.5K units increasing 13% Y-o-Y. For the full year, while overall volumes declined by 4%, HCV volumes increased by 5%.

Looking ahead, the automaker said with promising GDP growth outlook, incentives from government to improve productivity in both manufacturing and agriculture sectors, and continuing focus on infra, demand for CV’s is expected to improve from H2 FY25. “We remain cautiously optimistic about domestic demand while keeping a close watch on geopolitical developments, interest rates, fuel prices and inflation. We will continue to deliver strong EBITDA performance and focus on net cash will continue.”

“The Indian CV industry grew by a modest 2% in volumes during FY24, impacted by a high base effect of FY23, elections held across 5 states and the announcement of general elections. At Tata Motors, we strengthened our portfolio with the introduction of new passenger and cargo mobility solutions, stepped-up the thrust on digitalization, enriched customer engagement and experience with stronger partnering and made holistic progress on our sustainability agenda,” said Girish Wagh, Executive Director Tata Motors.

“Going forward, we will intensify our efforts to grow market share, profitably and consistently, in every business segment by delivering more value to customers with innovative products, smarter services and holistic mobility solutions,” he said.