Tata Motors reports Q2 profit of Rs. 3,764cr
Tata Motors reported a consolidated net profit of Rs. 3,764 crore for the July-September quarter, a significant turnaround from the Rs. 944 crore net loss in the same period last year. This is the fourth consecutive profitable quarter for the Tata Group's auto major. The upbeat Q2 can be credited to the robust performance of both Tata Motors and its subsidiary Jaguar Land Rover (JLR).
Q2 revenue and EBITDA show strong growth
The company's revenue for Q2 FY24 amounted to Rs. 1.05 lakh crore, reflecting a 32% rise from Rs. 79,611 crore reported in Q2 FY23. Furthermore, Tata Motors reported EBITDA for Q2 FY24 at Rs. 13,767 crore, more than twice the Rs. 5,572 crore documented in Q2 FY23.
Sectoral performance
In the quarter, Tata Motors sold 1,39,000 passenger vehicles, a 2.4% decrease, while their commercial vehicle sales rose by 3.5% to 1,04,000 units. Excluding the China joint venture, their British subsidiary JLR saw a 29% increase in sales to 96,817 units. The improved supply of specialized semiconductors enabled the company to increase production and sales.
Margin expansion
The margin saw significant expansion, driven by increased profitability in various sectors, such as passenger vehicles, commercial vehicles, and the luxury car manufacturer, JLR. "With a strong product pipeline, a seasonally stronger H2 and continued focus on cash accretive growth, we are confident of sustaining this momentum," said PB Balaji, Group Chief Financial Officer at Tata Motors, in a statement.
