MUMBAI – Tata Motors Ltd reported earnings for the quarter ended December, with the consolidated net profit surging 2.4 times year-on-year (YoY) to Rs 7,025 crore. The bottomline was way higher than an ETNow poll of Rs 4,660 crore.

Consolidated revenue from operations increased by 25% YoY to Rs 1.11 lakh crore.

Sequentially, the bottomline surged 87% and the topline grew by nearly 6%.

Consolidated earnings before interest, taxes, depreciation and amortization or EBITDA, grew by a sharp 42.5% YoY to Rs 15,418 crore, and operating margin expanded by 171 basis points to 13.94%.

The sharp improvement in the operational performance was despite the automaker seeing a rise in the raw material cost. Input costs rose nearly 20% YoY to Rs 63,850.42 crore.

Consolidated finance costs reduced by Rs 191 crore to Rs 2,485 crore during the quarter, due to a reduction in gross debt, the company said. Free cash flow in the automotive business during the quarter was positive, driven by strong improvement in cash profits. At the standalone level, Tata Motors saw its net profit soar 9 times YoY to Rs 4,570 crore, and revenue grew 18% to Rs 18,669 crore.

“We remain positive on all three auto businesses. We expect the performance to further improve in Q4 on account of seasonality, new launches and improving supplies at JLR. We achieved net debt reduction of Rs 9.5K crore in Q3, and we are confident of achieving our deleveraging plans,” the company said.

JLR Show
Jaguar Land Rover (JLR) reported record revenue of 7.4 billion pound sterling for the quarter, a growth of 22% from the year-ago period. Earnings before interest and taxes or EBIT margin at 8.8% was more than double on-year.

Increased wholesales to fulfil more client orders in the quarter drove the topline of the luxury carmaker.

“The higher profitability YoY reflects favourable volumes and reduced chip costs, offset partially by unfavourable fixed marketing, administration and FX revaluation,” the company said.

Revenue for the nine months ended December at 21.1 billion sterling was JLR’s highest-ever revenue in the first nine months of a financial year, and up 35% YoY.

JLR is on track to achieve its profitability and cash flow targets.

“The EBIT margin for FY24 is expected to be over 8%, and we continue to expect operating cash flows to support net debt of less than 1 billion sterling by the end of FY24, and positive net cash in FY25,” JLR said.

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