Tata Motors zips past Street in grand profit prix
Tata Motors, India's largest automaker by revenue, trumped Street expectations with a more than threefold surge in net profit in the March quarter propelled by strong performances across its three business verticals.
The parent of British luxury carmaker Jaguar Land Rover Automotive Plc reported a net profit of ₹17,528 crore in the three months ended March 31 compared with ₹5,496 crore a year earlier. Profit got a boost from a deferred tax credit of ₹9,500 crore.
The Street had forecasted profit of ₹7,200 crore for the March quarter. Revenue for the three-month period climbed 13%YoY to ₹1.19 lakh crore in line with market consensus of ₹1.2 lakh crore.
For the full year ended March 31, the maker of Nexon and Safari SUVs delivered record profit and revenue, buoyed by strong performance by JLR as well as its domestic passenger vehicle and commercial vehicle businesses.
JLR generated net profit of 2.5 billion in FY24. This is equivalent to what Tata Motors paid to acquire the marquee brands in 2008 from Ford Motor Company.
Tata Motors continued on the path of deleveraging, helping lower net automotive debt to Rs 16,000 crore in FY24 from Rs 43,700 crore in the previous year.
«The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25,» P.B. Balaji, chief financial officer, Tata Motors Group, told reporters in a post-earnings call.
On JLR, Balaji said he expects demand to stay consistent this fiscal. However, he added that there's some stress
