Tata Motors Ltd. reported an over three-fold augment in consolidated net profit for the fourth quarter to ₹ 17,407.18 crore from ₹ 5,407.79 crore in the same period a year earlier, helped by sturdy performance of luxury car Jaguar Land Rover (JLR) and growth in sales tax relief.
Consolidated revenue for the three months ended March 31 grew 13.5% year-on-year to ₹ 1,19,213.35 crore.
According to the company, JLR recorded “another record quarter” in the fourth quarter. Revenue for the quarter was up 11% year-on-year to £7.9 billion, up 6% sequentially.
“We achieved record company financial results, generating free cash flow of £2.3 billion, which enabled us to reduce net debt to £0.7 billion,” JLR CEO Adrian Mardell said in a statement.
In FY24, Tata Motors’ consolidated net profit increased over 13 times to ₹ 31,399.09 crore from ₹ 2,414.29 crore in the previous year. Full-year revenue grew 27% to ₹ 4,34,984.12 crore.
On a standalone basis, Tata Motors’ fourth-quarter net profit declined 21% year-on-year to ₹2,126.40 crore.
Standalone net profit for the full year almost tripled to ₹7,902.08 crore from ₹2,728.13 crore.
“It is pleasing to announce the results for FY24, during which the Tata Motors Group achieved the highest ever revenues, profits and free cash flow,” Tata Motors Group CFO PB Balaji told participants in a call after the results announcement. “Indian business is currently debt free and we are on track to become net debt free of the automotive industry on a consolidated basis by FY2025,” he added.
“The companies are performing well due to their unique strength and we are confident of maintaining this sturdy performance in the coming year,” Mr. Balaji noted.
“We remain cautiously positive about domestic demand for the full year and expect the first half of the year to be relatively weaker,” the automaker said in a statement, commenting on the outlook for the current year. “Demand in the premium luxury segment is likely to remain resilient despite emerging concerns about overall demand. Despite this, we are confident of achieving good results in FY25,” he added.
Tata Motors plans to separate its passenger vehicles division from its commercial vehicles division and make them two separately listed companies.
The board recommended a final dividend of £6 per share at £2 each (£3 ordinary dividend and £3 special dividend).
