Tata Motors trailed analyst estimates when it posted an 11.8 per cent drop in net profit for the quarter ended September 30, 2024. Net profit stood at ₹3,343 crore against ₹3,764 crore in the same period of the previous year, the company said on Friday.
Brokerages had pencilled in a higher number of around ₹5,000 crore in consolidated profits for the quarter.
The lacklustre performance saw revenues falling to ₹100,534 crore from ₹104,444 crore as Jaguar Land Rover (JLR) and its commercial vehicle business put in a weak show.
JLR revenue was down 5.6 per cent to £6.5 billion from £6.86 billion a year ago.
Tata Motors said the JLR performance was impacted by temporary supply constraints which resulted in EBIT (earnings before interest & taxes) margins falling 220 basis points to 5.1 per cent.
The profitability was impacted on account of temporary aluminum supply constraint and a hold placed on 6,029 vehicles for additional quality control checks.
The company said it continues to hold on to its full year revenue guidance of £30 billion.
“Our teams responded brilliantly to the aluminum supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients. With strong global demand for our products, we are well positioned to deliver on our commitments again this financial year,’’ Adrian Mardell, JLR CEO, said.
Revenue of Tata Commercial Vehicles (Tata CV) fell nearly 14 per cent to ₹17,300 crore from ₹20,100 crore.
CV volumes fell 19.6 per cent to 79,800 units, impacted by slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilization due to heavy rains.
Tata Passenger Vehicles also witnessed a drop in revenues, which fell to ₹11,700 crore from ₹12,200 crore last year. The company said the volumes were down on account of slow consumer demand and seasonal factors.
“The passenger vehicle industry in the second quarter witnessed around 5 per cent decline in registrations, resulting in continued build-up of channel inventory. Sales of electric vehicles (EVs) were additionally impacted by lapse of certain subsidies,” Shailesh Chandra, managing director Tata Motors Passenger Vehicles Ltd
and Tata Passenger Electric Mobility said.
