Tata Motors Ltd trailed estimates when it reported a 22 per cent drop in consolidated net profit for the third quarter ended December 31, 2024 amid weak margins and tepid volumes at Jaguar Land Rover (JLR).
The company posted a net profit of ₹5,451 crore against ₹7,025 crore a year ago. Analysts were expecting Tata Motors to post profits in the region of ₹6,700 crore.
During the quarter, revenues from operations were up 2.7 per cent to ₹ 113,575 crore from ₹110,577 crore in the year-ago period. Its EBITDA (earnings before interest, tax, depreciation & amortisation) margins declined 60 basis points to 13.7 per cent.
The period saw JLR posting a 1.5 per cent growth in revenues to £7,486 million from £7,375 million in the year-ago quarter. Its EBITDA margins slipped 200 basis points to 14.2 per cent.
Despite the record revenues, the subsidiary’s profit after tax came in at £375 million which was nearly 37 per cent lower than £592 million a year ago. JLR said that the drop in profits was due to adverse mark-to-market on foreign exchange revaluation.
On the road ahead, JLR said amid a challenging economic backdrop, it is on track to achieve its profitability and cash flow targets in the current fiscal.
During the quarter, Tata Motors' passenger vehicles (PV) division saw revenues dropping 4.3 per cent over the previous year period to ₹12,400 crore from ₹12,900 crore.
In volume terms, the wholesales stood at 140,000 units against 138,600 units last year. Its EBITDA margins gained 120 basis points to 7.8 per cent.
Tata Motors added that it recorded the fourth consecutive year of highest-ever volumes with 5,62,000 units sold in 2024.
The company's Punch was the top model in the industry in 2024 and continues to lead in the current fiscal. During the third quarter, Tata Motors said that it achieved the highest-ever registrations.
Tata Motors added that given the growth rates seen in the first nine months, the PV industry is poised for moderate rise in 2024-25.
While the numbers came after market hours, the Tata Motors share ended 3.29 per cent higher at ₹ 752.45 in the BSE.
