Tata Motors Q3 Results: Tata Motors announced its October-December quarter results for fiscal 2023-24, reporting a surge of 137.5 per cent in consolidated net profit at Rs 7,025.11 crore, compared to Rs 2,958 crore in the year-ago period.
Tata Motor’s total revenue from operations in the third quarter of current fiscal rose 25 per cent to Rs 110,577 crore, compared to Rs 88,488.59 crore, led by JLR sales which rose 27 per cent in the period. On the operating front, the auto major’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter rose 59 per cent to Rs 15,333 crore, compared to Rs 9,644 crore in the year-ago period.
As per reports, EBITDA margin in the quarter-under-review stood at 13.9 per cent, up 300 basis points (bps), compared to 10.9 per cent in the year-ago period, with all automotive verticals continuing their profitable growth trajectory. One basis point is one-hundredth of a percentage point. Profit before tax climbed to ₹7,493 crore in the third quarter of this fiscal as compared to ₹3,202 crore in the corresponding period in the previous fiscal.
Tata Motor’s CV’s revenue rose 19.2 per cent to Rs20,123 crore on account of salience towards medium and heavy commercial vehicles and better market operating price. The December quarter witnessed strong EBITDA and EBIT margins of 11.1 per cent (up 270 bps YoY) and 8.6 per cent (up 270 bps YoY) respectively, due to improved pricing, superior mix, and strong realizations, reports further said.
Tata Motor’s domestic wholesale CV volumes were 91.9K units, marginally higher 1.1 per cent YoY. Exports were at 4.8K units increasing by 14 per cent YoY. Tata Motors expects demand to improve in Q4FY24 across most segments on demand-pull initiatives.
Tata Motor’s PV’s revenue rose 10.6 per cent YoY to Rs12,910 crore. EBIT margins improved by 60 bps YoY to 2.1 per cent on account of cost savings in commodities, offsetting higher fixed expense spends. EV business EBITDA margins pre R&D spends was near breakeven. PV volumes were at 138.6K units (+5 per cent YoY) supported by a strong supply situation, new SUV facelifts, and a robust demand during the festive period.
Tata Motor’s debt to equity ratio dropped 1.58 times in the December quarter compared to 3.68 in the year-ago period. The Earnings per share (EPS) in the quarter-under-review climbed to Rs18.32 in the last quarter against ₹7.71 in Q3 of the previous fiscal. Finance costs reduced by Rs 191 crore to Rs2,485 crore in the December quarter, due to reduction in gross debt during the period.