Tata Motors erases domestic debt, targets net-cash goal for JLR in FY25

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₹48,000 crore dragged down its passenger vehicle business. The company reported an over three-fold jump in its consolidated net profit to ₹17,407 crore for Q4FY24, from ₹5,408 crore in the same period last fiscal, led by record sales of Range Rover luxury sports utility vehicles (SUVs) by its UK-headquartered subsidiary Jaguar Land Rover across the UK and overseas markets.

JLR reported a record Q4 and FY24 revenue of £7.9 billion and £29.0 billion respectively, and reduced its net debt to £0.7 billion by the end of the financial year. The maker of commercial vehicles, cars and SUVs clocked a 13% growth in its consolidated revenue at about ₹1.2 trillion for the January-March quarter, and an operating income of ₹17,900 crore, up 26.6% year-on-year, beating Bloomberg estimates.

PB Balaji, group chief financial officer, Tata Motors, reiterated that the company is now determined to become zero net-debt, as JLR sets out firmly on a path to become net-cash in FY25. The automaker's commercial vehicle arm, too, saw improved profitability and record revenues in Q4, even as its wholesale volumes softened during the quarter on a yearly basis.

While all of Tata Motors' auto businesses are on a firm footing, Balaji said the outlook for the company's India passenger vehicle business is 'relatively weaker' for the first half of the ongoing fiscal year. The carmaker said it expects market growth rate to moderate as pent-up demand is exhausted, high channel inventory presents a challenge for production and factors such as the ongoing general elections and a heatwave in many parts of the country add to uncertainty in demand.