Tata Motors’ Q4 PAT jumps over three-fold; FY24 profit and sales at all-time high

Tata Motors’ net profit for the fourth quarter of 2023-24 jumped over three-fold on a year-on-year with robust performance in all divisions. The profit soared significantly on the back of a one-time benefit in the form of deferred tax write-back during the period.

The automaker also posted the highest-ever revenue and profit numbers for the full financial year 2024 while its India business became debt-free. “The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25,” Tata Motors CFO PB Balaji said.

For the fourth quarter, the automaker posted a consolidated net profit of Rs 17,407.18, against Rs 5,407.79 crore in the year-ago quarter. Revenue from operations rose 13 percent on year to Rs 1.20 lakh crore with double-digit growth in Jaguar Land Rover and passenger vehicle division.

Higher volumes in Jaguar Land Rover and passenger vehicle unit, pricing actions, and a richer mix improved the company’s average selling prices and boosted the revenue. The company’s global wholesales rose 8.1 percent on year to 377,100 units during the period.

On the profitability front, Tata Motors' operating profit, or EBITDA, grew 27 percent to Rs 17,900 crore, while its operating profit margin improved by 160 basis points to 14.9 percent. Margins were driven by better realisations, mix and cost-saving actions across all three divisions.

The company recorded Rs 9,478.24 crore in deferred tax write-back during the fourth quarter.

For the full financial year, Tata Motors clocked Rs 31,399.09 crore in consolidated net profit. This compares with a net Rs 2,414.29 crore reported in FY23. The profit was supported by strong operating performance with operating profit almost doubling during the period.

EBITDA rose to around Rs 62,800 crore from Rs 37,000 crore in the financial year 2023. EBITDA margin, or operating profit margin, expanded by 360 basis points to Rs 14.3 percent.

Revenue from operations rose 27 percent to Rs 4.38 lakh crore. Revenue grew the most in Jaguar Land Rover, up 27 percent to £29 billion. The passenger vehicle unit saw its sales grow 19.3 percent to Rs 14,431 crore, while the commercial vehicle unit’s sales rose just 1.6 percent to Rs 21,590 crore.

“The strong performance has also helped to recognize a deferred tax asset of Rs 8.3K crore at Jaguar Land Rover and Tata Motors Ltd,” the company noted.