Tata Motors Q1 Results: PAT Comes At Rs 3,203 Crore Driven By Uptick In JLR Sales

Auto giant, Tata Motors reports better-than-expected first-quarter earnings for FY24. The Tata Group-backed automobile flagship firm registered a consolidated net profit of Rs 3,202.80 crore in Q1FY24, as against the net loss of Rs 5,006.60 crore in the same quarter a year ago, Also, revenue from operations jumped by 42.12% to Rs 102,236.08 crore in the quarter under review as against Rs 71,934.66 crore in Q1 of FY23.

The bottomline came in strong owing to easing in supply-chain constraints that lifted sales of luxury brand Jaguar Land Rover. Also, passenger vehicle sales remained steady.

However, Tata Motors Q1FY24 PAT and revenue declined by 40.7% and 3.5% from Rs 5,407.79 crore and Rs 105,932.35 crore respectively.

On a consolidated front, Tata Motors highlighted that it continued its strong performance in Q1 FY24 with Revenues at ₹102.2K Cr (up 42% yoy), EBITDA at ₹14.7K Cr (up 177% yoy) and EBIT of ₹8.3KCr (higher by ₹8.8KCr), all showing a sharp improvement driven by JLR and CV businesses whilst the PV business was steady.

On Tata Motors Q1 results, PB Balaji, Group Chief Financial Officer, Tata Motors said, "FY24 has begun on the right note with all automotive verticals delivering strong performances. The distinct strategy employed by each business is now delivering consistent results and making them structurally stronger. We remain confident of sustaining this momentum in the rest of the year and achieve our stated goals."

In Q1FY24, the company's commercial vehicles business reported revenue of ₹ 17.0K crore, (+4.4%), EBITDA 9.4% (+390 bps), EBIT 6.5% (+370 bps), PBT (bei) ₹ 0.9K crore. While Q1 CV domestic wholesales at 82.4 K units (-14.1% yoy), domestic retails at 77.6K units (-14.3% yoy).

Meanwhile, PV business was steady with 11.1% revenue growth and EBIT of 1.0% (+10bps). EBITDA jumped 5.3%, while domestic wholesales climbed 7.6% YoY.

Further, JLR revenues improved by 57% to £6.9 billion on strong wholesales and improved mix resulting in EBIT margins of 8.6% (+1,300bps). Also, the company's PBT (bei) in Q1 FY24 was £435 million, up £67 million from Q4 FY23 and up nearly £1 billion from Q1 FY23. The higher profitability year-on-year reflects favourable volume, mix, pricing and foreign exchange revaluation offset partially by higher inflation and supplier claims.

In regards to JLR's earnings, Adrian Mardell, JLR's Chief Executive Officer said, "We have had a strong start to the financial year and delivered our highest production levels in nine quarters and our highest Q1 cashflow on record. This is a testament to the thousands of determined people in the business working tirelessly to deliver every aspect of our Reimagine strategy."

Tata's newly announced £4bn UK giga-factory is expected to provide JLR with a stable and secure supply of battery cells to electrify JLR's next-generation modern luxury vehicles.

However, going ahead, Tata Motors expects Q2 production and cashflow to be lower for JLR than Q1 reflecting the annual summer plant shutdown while wholesales and profitability are expected to be more in line with recent quarters.

Overall, Tata Motors is optimistic about the demand situation despite near-term uncertainties and expect a moderate inflationary environment to continue in the near term.

It said, "We aim to deliver a strong performance in the rest of the year too, thanks to a healthy order book coupled with low-break-even in JLR, a steady improvement in demand whilst we continue to drive our demand-pull strategy in CV, a set of exciting launches ahead of the festive season in PV and continued aggression in EVs."

On BSE, Tata Motors share price ended at Rs 639.45 apiece, up by 1.62%. The stock also touched a new 52-week high of Rs 642.50 apiece earlier in the day.