Tata Motors’ Q4 net profit results show a remarkable 46% year-on-year increase in consolidated profit after tax (PAT), reaching Rs 17,529 crore, surpassing expectations. Last year, the company reported a net profit of Rs 12,033 crore, with revenue for the quarter standing at Rs 1.20 lakh crore, marking a 13.3% YoY growth.
This surge in Tata Motors’ Q4 net profit can be attributed to enhanced operating leverage, favorable commodity prices, and robust volume growth across diverse segments, leading to a staggering 222% rise in consolidated net profit to Rs 17,407.18 crore. Revenue from operations also increased by 13% to Rs 119,986.31 crore.
Analysts’ estimates were exceeded, with the average forecast predicting a 33% climb in profit to Rs 7,084 crore and a 15% surge in revenue to Rs 1,22,008 crore for the quarter.
For the full fiscal year 2023-24, Tata Motors’ net profit soared to Rs 37,764.33 crore from Rs 479.20 crore in FY23. PB Balaji, Group Chief Financial Officer, expressed satisfaction with the FY24 results, highlighting record revenues, profits, and free cash flows. He emphasized the debt-free status of Tata Motors’ India business and projected achieving net automotive debt-free status on a consolidated basis by FY25.
Tata Motors’ Q4 Net Profit: Fiscal Performance and Outlook
Despite anticipating sluggish domestic demand in the first half of the 2024-2025 fiscal year, Tata Motors’ Q4 net profit remains cautiously optimistic, particularly about the resilience of the premium luxury segment. The company’s board of directors recommended a final dividend of Rs 6 per Ordinary Share and Rs 6.20 per ‘A’ Ordinary Share for FY24.
In April 2024,Tata Motors’ Q4 net profit witnessed a year-on-year increase in total wholesales and domestic dispatches, reinforcing its market position. The UK subsidiary, Jaguar Land Rover (JLR), continued its strong financial performance trend, with notable growth in revenue for Q4 FY24 and FY24 overall.Tata Motors anticipates maintaining JLR’s earnings before interest and taxes (EBIT) margins in fiscal 2025, similar to the previous fiscal year’s 8.5%. Despite potential challenges such as elections and heat waves affecting demand,
Tata Motors remains committed to focusing on retail and achieving market-leading growth to sustain double-digit EBITDA margins and positive free cash flows in the passenger vehicle segment.
Tata Motors anticipates maintaining JLR’s earnings before interest and taxes (EBIT) margins in fiscal 2025, similar to the previous fiscal year’s 8.5%. Despite potential challenges such as elections and heat waves affecting demand, Tata Motors remains committed to focusing on retail and achieving market-leading growth to sustain double-digit EBITDA margins and positive free cash flows in the passenger vehicle segment.
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