Here’s a summary of the key points from Tata Motors’ Q1FY24 results:
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Consolidated net profit for the quarter was ₹3,202 crore, a significant improvement compared to a net loss of ₹5,006.66 crore in the same period last year.
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The company’s revenue from operations surged by 42% to ₹102,236.08 crore, surpassing the ₹1 lakh crore-mark as per Street estimates.
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Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased more than fivefold to ₹13,218 crore.
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The operating margin expanded by 700 basis points year-on-year to 14.4%.
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The surge in earnings was expected due to improving margins and healthy sales in its luxury arm, Jaguar, and Land Rover (JLR).
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Share price of Tata Motors hit a 52-week high ahead of the Q1 results announcement.
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ICICI Securities estimated Q1 net profit at ₹3,151.4 crore, with revenue expected to rise by 36% year-on-year to ₹98,080.6 crore.
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Tata Motors’ Commercial Vehicles domestic sales in Q1FY24 were 14.1% lower than Q1FY23 sales, but for June 2023, they were 20.2% higher than in May 2023.
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The company successfully upgraded its entire vehicle portfolio during the BS6 Phase 2 transition, offering more features and benefits to customers.
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The growth in Medium and Heavy Commercial Vehicles (M&HCV) was driven by the government’s infrastructure push and increased activity in various sectors.
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Tata Motors started deliveries of Electric Buses in line with the CESL tender mandate and expected to ramp up supplies in the coming months.
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Analysts noted that the leadership changes at JLR reflect the company’s commitment to its Reimagine strategy, focusing on an electric future and transforming into a modern luxury business.
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Tata Motors DVR to get delist and shareholders of DVR will get ordinary shares in the ratio 7:10
Please note that all information provided is based on the news and reports available up to July 25, 2023.