Tata Motors reports two-fold jump in Q3 FY24 net profit
Tata Motors has reported a whopping Rs. 7,025 crore net profit for the October-December quarter, doubling from Rs. 2,957.71 crore during the same period last year. This impressive growth was fueled by strong demand for commercial and passenger vehicles in India, steady expansion in Jaguar Land Rover models, reduced material costs, price increases, and outstanding product mix. The company's Q3 revenue also rose by a remarkable 24.9% on-year to Rs. 1,10,577 crore.
Analysts' expectations exceeded, EBITDA and operating margin rise
Surpassing analysts' predictions, Tata Motors' Q3 results showcased a 54% YoY net profit growth to Rs. 4,547 crore, and a 22% on-year revenue increase to Rs. 1,08,169 crore. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) soared by 42.5% YoY to Rs. 15,418 crore. Moreover, the operating margin rose by 171 basis points to 13.94%. Revenue from JLR business also climbed to Rs. 76,665 crore in the previous quarter, compared to Rs. 58,863 crore in December 2022.
Vehicle sales and CFO's statement on performance
In Q3 FY2023-24, Tata Motors sold a total of 234,981 vehicles across various segments in both domestic and international markets, surpassing the 228,169 units sold during Q3 FY 2022-23. PB Balaji, Group Chief Financial Officer of Tata Motors, stated, "It is satisfying to see our businesses execute well on their differentiated strategies and deliver a strong set of results for the quarter, thereby making it six quarters of consistent delivery."
A look at the stock prices
Today, on the National Stock Exchange (NSE), Tata Motors opened at Rs. 886 per share, and closed at Rs. 882.80 (up 0.49% compared to yesterday). The company has a market cap of Rs. 3.22 lakh crore. Meanwhile, on the Bombay Stock Exchange (BSE), it opened at Rs. 886.80 apiece, and ended at Rs. 878.80 (up 0.05% from the previous day).
