Tata Motors on Tuesday reported a consolidated profit of Rs 3,202.80 crore for the June quarter compared with a loss of Rs 5,006.60 crore in the same quarte last year.
Consolidated revenue for the quarter came in at Rs 1,02,236 crore, up 42.1 per cent, the Tata group firm said in a BSE filing.
Ebitda for the quarter stood at Rs 14,700 crore, up 177 per cent. EBIT came in at Rs about 8,300 crore, driven by JLR and CV businesses whilst the PV business was steady.
Revenue for the British arm Jaguar Land Rover (JLR) improved by 57 per cent to £6.9 billion on strong wholesales and improved mix resulting in EBIT margins of 8.6 per cent (up 1,300bps). CV volumes were down 15 per cent over prior year due to transition to BS6 Phase 2.
“However, the EBIT margins improved to 6.5 per cent (up 370 bps) benefiting from the demand-pull strategy and richer mix. PV business was steady with 11.1 per cent revenue growth and EBIT of 1 per cent (+10bps),” Tata Motors said.
Tata Motors said it remains optimistic on the demand situation despite near term uncertainties and expect a moderate inflationary environment to continue in the near term. The auto major said it aims 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 demand-pull strategy in CV, a set of exciting launches ahead of the festive season in PV and continued aggression in EVs.
Group Chief Financial Officer PB Balaji said:”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 achieve our stated goals.”
In the case of CV segment, Tata Motors expects demand to sequentially improve in FY24. The promising monsoon and continuing infrastructure thrust by the government auger well for the CV industry, even as it faces the headwinds of high interest rates, fuel prices and inflation, the company said.
Through innovation, superior customer service, and thematic brand activation, we will keep advancing our demand-pull strategy and increasing client preference. Through innovation, service excellence, and theme brand activation, we hope to increase Vahan market shares and revenue growth in the upcoming quarters. We also hope to produce double-digit EBITDA in FY24 by increasing realisations and cutting costs, according to Tata Motors.