Tata Motors Results 2024 Live Updates: Net profit rises 46% YoY to ₹17,529 crore, declares dividend of ₹6 per share
Tata Motors excelled in FY24, marking record profits and revenue growth. Notably, their EV sales surged, CV segment performed well, and JLR achieved significant success. A strategic outlook emphasizes sustainability and expansion.
Tata Motors reported its March quarter financial results on May 10, 2024, with significant growth across various segments. The auto giant recorded a remarkable 46 percent year-on-year increase in its net profit, soaring to ₹17,529 crore. This growth was accompanied by a notable 13.3 percent surge in consolidated revenue, reaching ₹1,19,986.31 crore. Moreover, the company announced a final dividend of ₹6 per share. Shailesh Chandra, Managing Director TMPV and TPEM, highlighted the exceptional performance in the passenger vehicle segment. In FY24, passenger vehicle sales in India hit a record high, with over 4.2 million units sold. This surge was primarily driven by SUVs, which accounted for 50% of the overall sales. The company's multi-powertrain approach and focus on green technologies contributed to a 29% penetration of CNG and electric vehicles in the overall portfolio. Notably, Tata Motors sold 73.8K EVs during the year, marking a 48% increase over FY23. Looking ahead to FY25, Tata Motors expects the demand for passenger cars to remain strong, albeit with a moderated growth rate due to factors such as the high base effect and external factors like elections and heat waves. The company plans to sustain double-digit EBITDA margins and positive free cash flows for its PV business by focusing on retails and driving EV penetration through new product launches and ecosystem development.
In terms of performance in FY24, Tata Motors witnessed robust growth in its passenger vehicle segment, with PV volumes at 155.6K units in Q4, supported by new SUV facelifts and multiple powertrains. Revenues in Q4 increased by 19% year-on-year to ₹14.4K crore, while EBIT margins improved by 150 bps year-on-year to 2.9%. Girish Wagh, Executive Director at Tata Motors Ltd, noted the modest 2% growth in the Indian CV industry during FY24, impacted by various factors including elections and the high base effect of FY23. However, Tata Motors strengthened its portfolio with new passenger and cargo mobility solutions and made significant progress on sustainability. The CV business recorded its highest-ever revenues of ₹78.8K crore and profits of ₹6.1K crore in FY24. Looking ahead to FY25, Tata Motors anticipates an improvement in CV demand from H2 FY25, driven by promising GDP growth outlook and government incentives. The company aims to intensify efforts to grow market share profitably across all business segments. Jaguar Land Rover (JLR), a unit of Tata Motors, reported a record-breaking performance, with revenue totaling £7.9 billion in Q4 FY24 and £29.0 billion for the entire fiscal year 2023-24. This marked a significant increase over the previous year and reflected JLR's sustained growth trajectory. The company's modern luxury vehicles, led by brands like Range Rover and Defender, continued to drive global demand.
In terms of financials, Tata Motors achieved remarkable milestones in FY24, with record revenues, profits, and free cash flows. The India business became debt-free, and the company is on track to become net automotive debt-free on a consolidated basis in FY25. The distinct strategies executed by each business segment are expected to sustain strong performance in the coming years. As Tata Motors declares its Q4 earnings, analysts anticipate a mixed bag in sales volume, with domestic passenger vehicle sales maintaining robust growth, while CV growth is expected to moderate temporarily. Additionally, improvements in EBITDA margin and business revenue are anticipated, driven by factors such as operating leverage, favorable commodity trends, and a diversified product mix. Tata Motors' shares closed 1.62% higher ahead of the Q4 results announcement, reflecting positive market sentiment towards the company's performance and outlook. With a focus on sustainability, innovation, and profitability, Tata Motors continues to drive growth and deliver value to its stakeholders.
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