Tata Motors saw its shares rise by nearly 3% in morning trades on Monday, ranking among the top gainers in the Nifty 50. The gains came despite a subdued Q2 performance, primarily due to weaker margins in its Jaguar Land Rover (JLR) segment. Analysts expect an improvement in the second half of FY25 as margin pressures for JLR are likely to ease.
Key Financial Highlights for Q2 FY25
- Consolidated Revenue: ₹1,01,450 crore, a 3.5% YoY decline.
- Jaguar Land Rover (JLR): Revenue of £6,475 million, down 5.6% YoY.
- Tata Commercial Vehicles: Revenue of ₹17,288 crore, a 13.9% YoY drop.
- Tata Passenger Vehicles: Revenue at ₹11,700 crore, declining by 3.9% YoY.
Segmental Performance
EBITDA Margin:
- Consolidated: 11.4%, a decrease of 230 basis points (bps) YoY.
- JLR: 11.7%, down by 320 bps.
- Tata Commercial Vehicles: 10.8%, up by 40 bps.
- Tata Passenger Vehicles: 6.2%, a decline of 30 bps.
EBIT Margin:
- Consolidated: 5.6%, down by 190 bps YoY.
- JLR: 5.1%, a decrease of 220 bps.
- Tata Commercial Vehicles: 7.8%, a slight drop of 10 bps.
- Tata Passenger Vehicles: 0.1%, a decline of 170 bps.
Profit Before Tax (PBT):
- Consolidated PBT: ₹5,768 crore, a YoY reduction of ₹391 crore.
- JLR PBT: £398 million.
- Tata Commercial Vehicles PBT: ₹1,314 crore, down by ₹212 crore YoY.
- Tata Passenger Vehicles PBT: ₹229 crore, a YoY decrease of ₹67 crore.
Management Outlook
Tata Motors remains cautiously optimistic about near-term demand, particularly due to expected festive demand and infrastructure projects. PB Balaji, Group CFO of Tata Motors, commented, “Growth in the quarter was impacted due to significant external challenges, but we remain focused on growth, competitiveness, and cash flows. With improving supply chains and rising demand, we are optimistic about delivering a stronger H2 FY25.”
As of 9:53 am, Tata Motors shares were trading 2.74% higher on the NSE.
