Tata Motors Ltd. (TML) announced its results for quarter ending June 30, 2023. TML continued its strong performance in Q1 FY24 with revenues at Rs 102.2k crore (up 42 per cent Y-O-Y), EBITDA at Rs 14.7K crore (up 177 per cent YoY) and EBIT of Rs 8.3k crore (higher by Rs 8.8k Cr), all showing a sharp improvement driven by Jaguar Land Rover (JLR) and Tata Commercial Vehicles (TATA CV) businesses whilst the PV business was steady.
JLR revenues improved by 57 per cent to £6.9b on strong wholesales and improved mix resulting in EBIT margins of 8.6 per cent (+1,300bps). TATA CV volumes were lower by 15 per cent over prior year due to transition to BS6 Phase 2. However, the EBIT margins improved to 6.5 per cent (+370bps) benefiting from the demand-pull strategy and richer mix.
Tata Passenger Vehicles (TATA PV) business was steady with 11.1 per cent revenue growth and EBIT of 1.0 per cent (+10bps). Overall PBT (bei) improved by Rs 10.3KCr to Rs 5.3KCr and Net Profit was Rs 3.3K crore.
Looking Ahead:
The company remains optimistic on the demand situation despite near term uncertainties and expect a moderate inflationary environment to continue in the near term. It aims to deliver a strong performance in the rest of the year too, thanks to a healthy order book coupled with low-break-even in JLR, a steady improvement in demand whilst they continue to drive demand-pull strategy in CV, a set of exciting launches ahead of the festive season in PV and continued aggression in EVs.
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 each business is now delivering consistent results and making them structurally stronger. We remain confident of sustaining this momentum in the rest of the year and achieve our stated goals."
Girish Wagh, Executive Director Tata Motors Ltd said: "The Indian commercial vehicles sector made a promising start to FY24 in Q1, enabled by a strong infrastructure push from the Government as well as increased economic activity. At Tata Motors, we successfully upgraded our entire portfolio beyond the mandatory requirements for BS6 Phase 2 transition to offer more features, value-adds and benefits to customers. We were impacted in the earlier part of the quarter with availability issues due to this large transition but delivered sequentially improved performance as the quarter progressed. Looking ahead, we remain optimistic on the demand environment even as it continues to face the headwinds of high interest rates, fuel prices and inflation. We will continue to drive our demand-pull strategy and step up our competitiveness with improved availability of our exciting range of products as the year progresses."
