Tata Motors has reported a consolidated net profit that surged 2.4 times year-on-year (YoY) in its Q3 FY24 results, reaching Rs 7,025 crore. This figure exceeded the Rs 4,654 crore estimated by analysts.
The company’s consolidated revenue from operations also saw 25 per cent YoY increase, totaling Rs 1.11 lakh crore. Sequentially, the bottom line saw 87 per cent surge, while the topline witnessed a significant growth of nearly 6 per cent.
The consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) saw stellar growth, expanding by 42.5 per cent YoY to Rs 15,418 crore. The operating margin demonstrated resilience, widening by 171 basis points to 13.94 per cent. This operational improvement came despite a 20 per cent YoY rise in raw material costs, which amounted to Rs 63,850.42 crore.
Interestingly, Tata Motors managed to reduce its consolidated finance costs by Rs 191 crore to Rs 2,485 crore during the quarter, attributed to a reduction in gross debt.
At the standalone level, Tata Motors saw its net profit skyrocketing nine-fold YoY to Rs 4,570 crore, while revenue experienced 18 per cent growth, reaching Rs 18,669 crore.
The company expressed optimism regarding all three auto businesses, expecting further improvement in Q4 due to seasonality, new launches and enhanced supplies at Jaguar Land Rover (JLR). Tata Motors achieved a net debt reduction of Rs 9.5K crore in Q3, reinforcing confidence in their deleveraging plans.
JLR reported record revenue of 7.4 billion pounds sterling for the quarter, a 22 per cent growth from the year-ago period. The EBIT margin, standing at 8.8 per cent, more than doubled on a yearly basis.
The luxury carmaker’s topline growth was driven by increased wholesales to meet client orders. The revenue for the nine months ending in December, totaling 21.1 billion sterling, was JLR’s highest-ever revenue for the first nine months of a financial year, up 35 per cent YoY.
