Tata Motors Limited (TML) has reported its consolidated financial results for Q2 FY25, with revenue declining 3.5% YoY to ₹1,01,450 crore. The company posted a Profit After Tax (PAT) of ₹3,450 crore for the quarter ending September 30, 2024, marking a 10% drop compared to ₹3,832 crore in the same quarter last year. The company’s EBITDA stood at ₹11,600 crore, with a 190 basis points YoY decrease in EBITDA margin, now at 5.6%.
Segment Highlights
- Jaguar Land Rover (JLR):
- JLR’s revenue declined by 5.6% YoY to £6.5 billion.
- The EBITDA margin contracted by 320 bps to 11.7%.
- EBIT margin stood at 5.1%, a decline of 220 bps.
- Challenges from temporary supply constraints impacted performance.
- Tata Commercial Vehicles (CV):
- Revenue grew by 13.9% YoY, reaching ₹17,288 crore.
- EBITDA margin saw an improvement, now at 10.8%, up by 40 bps.
- EBIT margin also improved by 10 bps, standing at 7.8%.
- Tata Passenger Vehicles (PV):
- Revenue fell by 3.9% YoY to ₹11,700 crore.
- The EBITDA margin was reported at 6.2%, a reduction of 30 bps YoY.
- EBIT margin dropped by 170 bps, reaching 0.1%.
Outlook and Management Commentary
The company remains cautious about near-term demand dynamics but is optimistic due to upcoming festive demand and infrastructure investments. PB Balaji, Group CFO of Tata Motors, commented on the quarter’s performance, stating, “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.”
Tata Motors aims to reduce its debt by the end of the fiscal year, driven by improvements in operational performance and strategic focus across segments.
