Tata Motors has announced its results for the quarter ending September 30, 2024. Tata delivered revenues of Rs 101,450 crore (down 3.5%), EBITDA at Rs11.6K crore (11.4%, down 230bps) and EBIT of Rs 5.6K crore (5.6%, down 190bps) in a challenging external environment.
PBT (bei) for Q2 FY25 stood at Rs 5.8K crore down Rs 391 crore while Net Profit was ₹3.5K Cr. For H1 FY25, the business reported a strong PBT (bei) of Rs 14.6K crore, an improvement of Rs 2.9K crore over the previous year. JLR revenue was down by 5.6% to £6.5b. As highlighted last quarter, JLR performance was impacted by temporary supply constraints which resulted in EBIT margins of 5.1% (down 220bps).
PV volumes were at 130.5K units (-6.1% yoy) driven by slow consumer demand and seasonal factors. Revenues in Q2 FY25 were down 3.9% yoy at Rs 11.7K crore, while EBITDA margins were steady at 6.2%, down 30 bps yoy despite weak industry demand on account of material cost savings and improved mix.
In Q2 FY25, PV (ICE) business delivered consistent 8.5% EBITDA margins, while EV business EBITDA was at negative 5%. EV business EBITDA margins (excluding product development expenses) were positive at 1.7%. On half-year basis, the PV business delivered EBITDA margin of 6.0% (+10 bps yoy) and PBT (bei) at Rs 0.4K Cr.
CV revenues were down by 13.9% but EBITDA margins improved to 10.8% (up 40 bps) on favourable pricing and material cost savings despite adverse volumes. PV revenues were down by 3.9% but EBITDA margins were steady at 6.2% (down 30 bps) through mix improvements and cost reduction actions.
PB Balaji, Group Chief Financial Officer, Tata Motors said, “Growth in the quarter was impacted due to significant external challenges as highlighted earlier. Overall, the business fundamentals remain strong, and we remain focused on our agenda of driving growth, competitiveness and free cash flows. As the supply challenges ease and demand picks up, we are confident of steady improvement in our performance and delivering a strong H2.”
JLR delivered an eighth successive profitable quarter, despite temporary aluminium supply constraints. Revenue for the quarter was £6.5 billion, down 5.6% versus Q2 FY24, while H1 FY25 revenue at £13.7 billion was flat yoy. EBIT margin was 5.1% in Q2 FY25, down 220 bps compared to Q2 FY24 while H1 FY25 EBIT margin was 7.1%.
The decrease in profitability yoy reflects lower wholesales and increased VME, FMI and selling costs, partially offset by prioritisation of Range Rover production and material cost improvement. PBT in Q2 FY25 was £398 million, down from £442 million a year ago, while H1 FY25 profit before tax was £1,099 million, up 25% YoY. Free cash flow for the quarter was £(256) million, again reflecting constrained production and wholesale volumes.
In Q2 FY25, domestic wholesale CV volumes were 79.8K units, lower 19.6% yoy impacted by a slowdown in infrastructure project execution, a reduction in mining activity and an overall drop in fleet utilization due to heavy rains. Exports were at 4.4K units down 11.1% yoy. Revenues were down by 13.9% yoy to Rs 17.3K crore, however, EBITDA margins improved to 10.8% (up 40 bps yoy) led by savings in commodity costs. On half-year basis, the CV business delivered EBITDA margin of 11.2% (+120 bps yoy) and PBT (bei) of Rs 2.8K crore.
