Tata Motors reports robust Q1FY24 performance: Revenues surge by 42%, driven by JLR and CV businesses
Tata Motors (TML) reported strong consolidated performance with revenues reaching ₹102.2K crores, a 42% YoY increase. EBITDA stood at ₹14.7K crores, rising by 177% YoY, and EBIT reached ₹8.3K Crores, indicating a sharp improvement driven by the Jaguar Land Rover (JLR) and Commercial Vehicle (CV) businesses, while the Passenger Vehicle (PV) business remained steady. In Q1FY24, the commercial vehicles industry faced challenges due to the transition to BS6 Phase 2 emission norms, resulting in a decline in domestic CV volumes by 14.1% YoY to 82.4K units.
Exports were also affected, with volumes down by 32% YoY to 3.6K units due to subdued economic conditions in overseas markets. Despite the drop in volumes, revenues for the commercial vehicles industry improved by 4.4% to ₹17.0K Crores, driven by an improved product mix and better market operating price. The Heavy Commercial Vehicle (HCV) segment saw growth of 9% YoY, fueled by the Government's strong infrastructure push and increased activity in e-commerce, construction, auto logistics, and the petroleum sector.
Despite the challenges, the business reported strong financial indicators, with EBITDA and EBIT margins reaching 9.4% and 6.5% respectively in Q1FY24. The strong performance was attributed to improved pricing, a superior product mix, and stable commodity costs. The business achieved a robust Profit Before Tax (PBT) of ₹0.9K crores in Q1FY24.
Overall, Tata Motors' Profit Before Tax (PBT) improved by ₹10.3K Crores, reaching ₹5.3K Crores, and the Net Profit amounted to ₹3.3K Crores. PB Balaji, Group Chief Financial Officer, Tata Motors said: “FY24 has begun on the right note with all automotive verticals delivering strong performances. The distinct strategy employed by
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