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Tata Motors Reports Stellar Q3 Performance Fueled by Jaguar Land Rover Success

3rd February, 2024| By Business Desk
Tata Motors - Altroz
TATA Altroz | Credit: Wikimedia Commons
  • Tata Motors reported a remarkable over two-fold increase in consolidated net profit for Q3, reaching ₹7,025 crore, propelled by robust sales in its luxury car unit, Jaguar Land Rover (JLR).
  • The overall consolidated net profit surged from ₹2,957.71 crore in the previous year to ₹7,025 crore, showcasing a commendable financial performance.
  • Jaguar Land Rover (JLR) played a pivotal role, delivering strong results with increased wholesales, a revenue of £7.4 billion (up 22%), and a notable EBIT margin improvement from 3.7% to 8.8%.
  • Tata Motors’ India business exhibited substantial growth, with standalone profit for Q3 at ₹4,570 crore, compared to ₹506 crore in the same quarter of the preceding year.
  • PB Balaji, Group Chief Financial Officer, expressed satisfaction with the consistent execution of differentiated strategies, emphasized the sixth consecutive quarter of strong results, and conveyed optimism about sustaining performance in upcoming quarters.

Tata Motors, India’s foremost automotive entity, has disclosed its third-quarter financial results, portraying a notable ascent in consolidated net profit. The reported figures illustrate a more than two-fold increase, surging from ₹2,957.71 crore in the corresponding period of the previous year to ₹7,025 crore for the quarter concluding on December 31, 2023. This impressive financial performance is predominantly attributed to the robust sales observed in its British luxury car subsidiary, Jaguar Land Rover (JLR).

The consolidated net profit for Tata Motors escalated to ₹70.25 billion rupees ($847.7 million), marking a substantial progression from the analogous period in the preceding year. Revenues for the same period reached ₹1,09,799.22 crore, registering a noteworthy 25% augmentation from ₹87,783.21 crore in the comparable period of the previous fiscal year.

Examining the financial particulars of Tata Motors’ India business, the standalone profit for the third quarter reached ₹4,570 crore, a remarkable increase from ₹506 crore reported in the corresponding quarter of the preceding year. Correspondingly, revenues for the same period ascended to ₹18,500 crore from ₹15,693 crore, reflecting the enterprise’s notable growth trajectory.

Providing insights into the diversified performance of Tata Motors, PB Balaji, the Group Chief Financial Officer, expressed satisfaction with the consistent execution of differentiated strategies across their business divisions. He lauded the quarter’s robust results, emphasizing that this marked the sixth consecutive quarter of commendable performance. Balaji further articulated optimism about concluding the fiscal year on a strong note and reiterated confidence in sustaining this performance in subsequent quarters while adhering to their de-leveraging plans.

Discussing the outlook for the future, Balaji conveyed a positive stance on all three automotive businesses under the Tata Motors umbrella. Anticipating an improvement in performance during Q4 due to seasonality, new product launches, and enhanced supplies at Jaguar Land Rover (JLR), he highlighted the achieved net debt reduction of ₹9,500 crore in Q3 and expressed confidence in realizing their deleveraging objectives.

Jaguar Land Rover (JLR) emerged as a pivotal contributor to Tata Motors’ stellar performance during the reported quarter. JLR witnessed a commendable surge in wholesales, effectively meeting heightened client demand. The revenue for the quarter reached £7.4 billion, reflecting a substantial 22% increase compared to Q3 FY23. The positive trajectory in JLR’s profitability was underscored by an EBIT margin of 8.8%, a noteworthy leap from 3.7% in the corresponding period of the preceding year. The augmented profitability was attributed to favorable volumes and diminished chip costs, albeit partially offset by unfavorable fixed marketing, administration, and foreign exchange revaluation.

Adrian Mardell, CEO of JLR, expressed satisfaction with their financial performance, citing the best quarterly profit in seven years and the highest-ever revenue for the initial nine months of a financial year. Mardell highlighted record-breaking sales of their modern luxury vehicles and expressed enthusiasm about the imminent launch of the Range Rover Electric.

Dhruv Mudaraddi, a Research Analyst at Stoxbox, acknowledged Tata Motors’ robust performance in Q3 FY24, affirming that all automotive verticals maintained profitable growth trajectories. Looking forward, Mudaraddi expressed optimism about Tata Motors sustaining its growth momentum in the upcoming quarters, emphasizing the company’s agility and constructive outlook.

In conclusion, Tata Motors’ Q3 results underscore a robust financial performance driven by stellar contributions from its various business divisions, particularly the commendable showing of Jaguar Land Rover. The positive trajectory in net profit, revenues, and strategic initiatives positions Tata Motors favorably in navigating the dynamic automotive landscape, instilling confidence in sustained growth in the foreseeable future.