Tata Motors's Q4 profit surges 222% to over ₹17,400 crore
What's the story
Tata Motors, India's leading EV carmaker, has reported a staggering 222% growth in its consolidated net profit for the fourth quarter, amounting to ₹17,407.18 crore.
This substantial increase is credited to improved operating leverage, favorable commodity prices, and robust volume growth across various segments.
The company's revenue from operations also experienced a 13% rise to ₹1,19,986.31 crore for the reviewed quarter, up from ₹1,05,932.35 crore a year ago.
CFO remarks
Tata Motors's CFO comments on record Q4 results
P.B Balaji, Group Chief Financial Officer of Tata Motors, expressed satisfaction over the FY24 results.
He stated, "It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows."
Balaji also revealed that the India business is now debt-free and projected to become net automotive debt-free on a consolidated basis in FY25.
Exceeding estimates
Tata Motors's Q4 results surpass analysts' expectations
The Q4 results of Tata Motors surpassed the average estimates of six broking firms, which had forecasted a profit of ₹7,084 crore in the fiscal fourth quarter.
The company's revenue from operations was also predicted to surge 15% on-year to ₹1,22,008 crore.
These impressive results exceeded analysts' expectations and further solidified Tata Motors's strong financial performance.
Dividend and growth
Tata Motors recommends final dividend, reports wholesale increase
In light of these impressive results, Tata Motors's board recommended a final dividend of ₹6 per Ordinary Share and ₹6.20 per 'A' Ordinary Share for the financial year ended March 31, 2024.
The company also reported an increase in total wholesales by 11.5% year-on-year to 77,521 units in April 2024 compared with 69,599 units in April 2023.
This growth further underscores the company's strong performance during this period.
JLR success
Jaguar Land Rover unit continues strong financial performance
Tata Motors's Jaguar Land Rover (JLR) unit maintained its strong financial performance trend in the financial year with another record-breaking quarter in Q4 FY24.
The revenue for the quarter was £7.9 billion, up 11% versus Q4 FY23 and up 6% versus Q3 FY24.
The revenues for FY24 were £29.0 billion - marking JLR's highest ever full-year revenue and a 27% increase compared to the prior year.