Tata Motors, India’s leading automaker, has announced a consolidated net profit of Rs 7,025 crore for the third quarter (October-December) of the fiscal year 2023-24. The substantial increase, more than two-fold from the previous year’s Rs 2,958 crore, is attributed to strong demand for both passenger and commercial vehicles in India, sustained growth in Jaguar Land Rover models, lower raw material costs, strategic price hikes, and an improved product mix.
Key Highlights:
- Robust Financial Performance: Tata Motors’ consolidated net profit for Q3 FY2023-24 stands at Rs 7,025 crore, showcasing significant growth compared to Rs 2,958 crore in the same period the previous year.
- Revenue Surge: The company reported a 25% year-on-year increase in revenue, reaching Rs 1,10,577 crore, up from Rs 88,489 crore in Q3 FY2022-23.
- EBITDA and Operating Margin: Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 42.5% YoY to Rs 15,418 crore, with an operating margin expansion of 171 basis points to 13.94%.
- Sales Performance: Total vehicle sales, both domestic and international, for Q3 FY2023-24 reached 2,34,981 vehicles, surpassing the 2,28,169 units recorded in the corresponding quarter of the previous year.
- Strategic Initiatives: Tata Motors emphasized its focus on executing differentiated strategies across its businesses, leading to consistent and strong financial results for six consecutive quarters.
- Market Strengthening: The carmaker witnessed a 5% increase in passenger vehicle wholesales, attributing the growth to enhanced market positioning, reduced channel stock, and positive market responses to new launches, including Nexon, Harrier, and Safari.
- Outlook and Confidence: Tata Motors aims to conclude the fiscal year on a robust note, expressing confidence in sustaining its performance in upcoming quarters and delivering on its de-leveraging plans.
Tata Motors’ impressive financial results underscore its resilience and adaptability in navigating the dynamic automotive landscape, signaling optimism for the future.
