Tata Motors Q1 FY25 earnings: JLR sales, better realization boosts profit

Tata Motors on Thursday reported that its net profit for the first quarter of the financial year 2025 soared 73.8% on year, while its operating profit rose by 6%. The profit was driven by robust Jaguar Land Rover sales, an improved mix in overall volumes, and moderation in raw material price inflation.

For the quarter ended June, the automaker clocked a consolidated net profit of Rs 5,566 crore, against Rs 3,203 crore. Revenue from operations rose 5.7% on year to Rs 108,048 crore, despite a drop in the revenue from the passenger vehicle segment.

The topline reflects higher overall volume and average selling prices. The impact of a marginal decline in volume from the passenger vehicle segment was offset by an improvement in JLR and commercial vehicle volumes.

Tata Motors’ India passenger vehicle division volume was lower by 1.1% at 138,8oo units and the revenue from this segment fell 7.7%. However, commercial vehicle wholesales grew 5.7% to 93,700 units and JLR volume rose  around 5%. Revenue from commercial vehicles and JLR improved 5.1% and 5.4%, respectively.

“The first quarter has carried forward the momentum of last year with all businesses continuing to deliver on their distinctive strategies,” Chief Financial Officer PB Balaji said.

On the profitability front, Tata Motors' operating profit, or EBITDA, expanded by 6% to Rs 15,600 crore while its EBITDA margin improved to 14.4% from 13.2% in the year-ago period, according to the company.

Tata Motors expects global demand to remain muted going forward and a gradual improvement in domestic demand during the rest of the year, on account of continued investments in infrastructure, healthy monsoons, favourable macros and festive demand.

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