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Tata Motors, India's largest automaker, reported impressive financial results for the quarter and fiscal year ended March 2024, demonstrating strong growth and resilience amidst a challenging market environment.
For the fourth quarter (Q4 FY24), Tata Motors reported a consolidated net profit of Rs 17,529 crore, marking a significant 46% increase compared to the Rs 12,033 crore profit reported in the same period of the previous year. This outperformance exceeded market expectations, as analysts had estimated a net profit of Rs 6,255 crore.
The company's revenue for the quarter under review stood at Rs 1.20 lakh crore, reflecting a 13.3% year-over-year (YoY) growth. Although this was marginally lower than the estimated Rs 1.21 lakh crore, it nevertheless represented a healthy increase in the company's top line.
Tata Motors' earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 FY24 amounted to Rs 17,900 crore, registering a substantial 26.6% YoY growth. Similarly, the company's earnings before interest and taxes (EBIT) were reported at Rs 11,000 crore, showcasing strong performance across all three of its auto businesses.
The profit before tax (PBT) for the quarter stood at Rs 9,500 crore, while the net automotive debt witnessed a further reduction to Rs 16,000 crore. Notably, the company announced a final dividend of Rs 6 per share, payable to eligible shareholders on or before June 28, 2024, if approved at the company's annual general meeting (AGM).
Looking ahead, Tata Motors expressed cautious optimism regarding domestic demand for the full fiscal year, anticipating a relatively weaker first half (H1). Despite concerns about overall demand, the company remains confident in the resilience of the premium luxury segment and projects a strong performance in FY25.
Jaguar Land Rover (JLR), Tata Motors' British subsidiary, also delivered a record-breaking performance for both Q4 and FY24. In Q4, JLR reported a revenue of £7.9 billion, while its PBT stood at £661 million. For the full fiscal year, JLR's revenue reached £29 billion, and its PBT amounted to £2.2 billion, marking the highest since FY15.
JLR's EBIT margin for Q4 was 9.2%, and its FY24 EBIT margin was 8.5%. The company's free cash flow for Q4 was £892 million, contributing to a record £2.3 billion for FY24. Furthermore, JLR's net debt was reduced to £0.7 billion.
As of the end of FY24, JLR's order book stood at approximately 133,000 vehicles, with 76% of those orders attributed to the Range Rover (RR), RR Sport, and Defender models.
Tata Commercial Vehicles (TCV), another key subsidiary of Tata Motors, reported a revenue of Rs 14,400 crore in Q4 FY24, representing a 19.3% YoY growth. Its EBITDA grew by 7.3%, and its PAT reached Rs 394 crore, reflecting a 56% YoY increase.
Overall, Tata Motors' Q4 and FY24 financial results underscore the company's robust performance and its commitment to delivering value to its shareholders. The company's well-rounded approach, encompassing a focus on innovation, customer satisfaction, and operational efficiency, positions it well for continued success in the Indian and global automotive markets.
The company's prudent financial management, strong product portfolio, and strategic partnerships are expected to fuel its growth trajectory in the years to come.
Source: Tata Motors Q4 Results: Cons PAT jumps 46% YoY to Rs 17,529 crore, beats estimates