NEW DELHI: On the back of robust Jaguar Land Rover (JLR) sales, homegrown auto major Tata Motors on Thursday reported a 74% jump in its June quarter (Q1FY25) consolidated profit at Rs 5,566 crore as against Rs 3,203 crore reported in the same quarter last year. Revenue from operations rose 5.7% year-on-year to Rs 108,048 crore in the quarter.
The automaker’s consolidated earnings before, interest, tax, depreciation, and amortisation (EBITDA) rose 19% YoY to Rs 15,785 crore. The EBITDA margin remained flat at 14.6%. PB Balaji, Group CFO, Tata Motors, said, “The first quarter has carried forward the momentum of last year with all businesses continuing to deliver on their distinctive strategies. We are confident of sustaining the performance in the coming quarters and delivering a strong year.”
It said global demand is likely to remain muted and they expect gradual improvement in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favourable macros and festive demand. For Tata Motors, JLR revenues grew 5.4% to £7.3 billion with EBIT margins of 8.9% (+30 bps) driven by favourable volume, mix and material cost improvements. JLR’s Q1 wholesales stood at 98,000, up 5% YoY and retails were at 1,11,000, up 9% YoY. The British luxury car brand said it has increased investment from £15 billion to £18 billion over five years to support the delivery of Reimagine strategy.
While commercial vehicle (CV) revenue grew 5.1% to Rs 17,800 crore, passenger vehicle (PV) revenue fell 7.7% to Rs 11,800 crore, reflecting the challenging market conditions. June quarter PV wholesales stood at 138,800 units (-1.1% YoY).
Shailesh Chandra, managing director TMPV and TPEM, said: “The PV industry in Q1 FY25 saw retails (registrations) moderating, impacted by the general elections and intense heat waves across the country…While the personal segment retail has grown for EVs, there was a sharp decline witnessed in the fleet segment. Going forward, we expect an improvement in overall sales on the back of the onset of the festive season and the launch of Curvv, India’s first SUV Coupe.”
Demand to remain muted
Tata Motors said global demand is likely to remain muted and they expect gradual improvement in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favourable macros and festive demand