Tata Motors Q2 Results: Consolidated income from operations climbed 32% year on year (YoY) to Rs 1.05 lakh crore, which was somewhat less than the projected Rs 1.07 lakh crore. The business claimed that strong profitable growth across auto verticals drove the topline in the quarter, while healthy wholesale sales and improved mix assisted margin expansion.
Tata Motors Ltd recorded a total net profit of Rs 3,764 crore for the quarter ending September 2023, compared to a net loss of Rs 945 crore the previous year. However, the profit number was lower than the Rs 4,315 crore predicted by ETNow.
Consolidated income from operations climbed 32% year on year (YoY) to Rs 1.05 lakh crore, little less than the expected Rs 1.07 lakh crore.
During the quarter, the automaker’s operational performance improved dramatically, with consolidated profits before interest, taxes, depreciation, and amortization (EBITDA) increasing 93% year on year to Rs 21,214 crore.
As a consequence, the operating margin increased by 638 basis points year on year to 20.18%.
The business claimed that strong profitable growth across auto verticals drove the topline in the quarter, while healthy wholesale sales and improved mix assisted margin expansion.
Overall financial performance is likely to improve further as a result of a more diverse mix, ongoing low-break-even in JLR, CV’s demand-pull approach, and improved profitability in PV/EV.
“With a strong product pipeline, a seasonally stronger H2 and a continued focus on cash accretive growth, we are confident in sustaining this momentum,” said P B Balaji, Tata Motors’ Group Chief Financial Officer.
Land Rover Jaguar
Jaguar Land Rover Automotive Plc in the United Kingdom reported a significant 30.4% YoY increase in revenue to 6.86 billion sterling pounds, driven by stronger wholesale sales, better mix, cost savings, and investment in demand creation.
EBIT margin was 7.3% in the third quarter and 8% in the first half. In light of the outstanding performance in the first half, JLR has raised its EBIT margin target for FY24 to roughly 8% from 6% before.
Profit before tax for the quarter was 442 million pounds, up more than 600 million pounds from the same period previous year.
JLR achieved free cash flow of 300 million sterling in the September quarter and 751 million sterling in H1, which is the biggest H1 cashflow on record for the luxury manufacturer.
In the September quarter, net debt was 2.2 billion sterling, with total debt of 6.5 billion sterling.