Tata Motors reports net profit of Rs 3,203 crore in Q1FY24
During the quarter under review, the company's EBITDA at Rs 14,700 crore up 177% and EBIT was Rs 8,300 crore, all showing a sharp improvement driven by JLR and CV businesses, while the PV business was steady.
Auto major Tata Motors reported a consolidated net profit of Rs 3,203 crore for the quarter ended June, as against a net loss of Rs 5,007 crore a year ago. Meanwhile, the company's consolidated revenue from operations increased 42% in Q1FY24 year on year to Rs 1.02 lakh crore as compared to Rs 71,934.66 crore.
During the quarter under review, the company's EBITDA at Rs 14,700 crore up 177% and EBIT was Rs 8,300 crore, all showing a sharp improvement driven by JLR and CV businesses, while the PV business was steady, the company said in an official release.
“FY24 has begun on the right note with all automotive verticals delivering strong performances. The distinct strategy employed by each business is now delivering consistent results and making them structurally stronger. We remain confident of sustaining this momentum in the rest of the year and achieving our stated goals," PB Balaji, Group Chief Financial Officer, Tata Motors said.
On the outlook, the company remained optimistic about the demand situation, despite near term uncertainties, and expects a moderate inflationary environment to continue in the near term. "We aim to deliver a strong performance in the rest of the year too, thanks to a healthy order book coupled with low-break-even in JLR, a steady improvement in demand whilst we continue to drive our demand-pull strategy in CV, a set of exciting launches ahead of the festive season in PV and continued aggression in EVs," Tata Motors said.
Jaguar Land Rover (JLR), part of Tata Motors since 2008, saw its revenues improve by 57% to Euro 6.9 billion in Q1 FY24 on strong wholesales and an improved mix, resulting in EBIT margins of 8.6%, up 1,300 basis points. CV volumes were lower by 15% over the prior year due to the transition to BSVI Phase II. However, the EBIT margins improved to 6.5%, up 370bps, benefiting from the demand-pull strategy and a richer mix. PV business was steady with 11.1% revenue growth and EBIT of 1, up 10 basis points.
JLR production and cashflow in Q2 is expected to be lower than Q1, reflecting the annual summer plant shutdown, while wholesales and profitability are expected to be more in line with recent quarters. “I am pleased to report a third consecutive quarter of strengthening financial performance for JLR. We have had a strong start to the financial year and delivered our highest production levels in nine quarters and our highest Q1 cash flow on record. This is a testament to the thousands of determined people in the business working tirelessly to deliver every aspect of our Reimagine strategy," Adrian Mardell, JLR Chief Executive Officer, said.
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