Synopsis
Tata Motors announced a 22% decline in net profit for Q3 FY25 at Rs 5,451 crore, down from Rs 7,025 crore year-on-year. Despite this, EV sales in the personal segment rose by 19%. The company attributes profit drop to higher discounts and weaker margins.Key Takeaways
- Net profit decreased by 22% to Rs 5,451 crore.
- Revenue increased by 2.7% to Rs 1,13,575 crore.
- EBITDA margins declined by 60 basis points to 13.7%.
- JLR revenue reached 7.5 billion pounds.
- EV sales rose by 19% year-on-year.
Mumbai, Jan 29 (NationPress) Tata Motors has disclosed a 22% reduction in its net profit for the third quarter (Q3) of FY25, amounting to Rs 5,451 crore, a decrease from Rs 7,025 crore during the same period last fiscal year.
This decline in profit is largely attributed to increased discounts aimed at stimulating sales and lower margins, despite a slight uptick in overall revenue.
Operations revenue grew by 2.7% year-on-year, reaching Rs 1,13,575 crore, bolstered by a moderate increase in sales, as stated in the company’s filing.
Nonetheless, Tata Motors’ EBITDA margins fell by 60 basis points to 13.7%.
The earnings before interest and tax (EBIT) reached Rs 10,000 crore, reflecting a modest improvement of 60 basis points compared to the previous year.
Automotive free cash flow was recorded at Rs 4,700 crore, aided by enhanced sales, while finance expenses decreased by Rs 760 crore to Rs 1,725 crore.
Jaguar Land Rover (JLR), the luxury vehicle division of Tata Motors, achieved a record quarterly revenue of 7.5 billion pounds, marking a 1.5% increase from the previous year.
This segment’s EBIT margin reached 9%, the highest in a decade, although its EBITDA margin decreased by 200 basis points to 14.2%.
Profit before tax (PBT), excluding extraordinary items, amounted to £523 million, lower than the £627 million reported a year earlier.
In the commercial vehicle (CV) sector, revenue fell by 8.4% year-on-year to Rs 18,431 crore due to reduced sales and an unfavorable product mix.
Nevertheless, EBITDA margins improved to 12.4%, benefiting from material cost savings and the government’s production-linked incentive (PLI) scheme.
The passenger vehicle (PV) segment experienced a 4.3% drop in revenue to Rs 12,354 crore.
Despite the revenue decline, the EBITDA margin rose by 120 basis points to 7.8%, supported by cost-reduction strategies and PLI incentives.
Tata Motors' electric vehicle (EV) sales in the personal segment saw a 19% year-on-year increase, although fleet sales were affected by the expiration of FAME II subsidies.
Tata Motors' shares closed at a 3.3% increase, reaching Rs 752.5 apiece.
