Tata Motors clocks net profit of Rs 3,203 crore in Q1FY24; stock hits fresh high

26 Jul 2023 , 09:48 AM

Tata Motors reported a consolidated net profit of Rs 3,203 crore for the first quarter of fiscal year 2023-24 (Q1FY24), bolstered by increased margins in its passenger vehicle (PV) division and strong sales at its premium automobile segment, Jaguar Land Rover (JLR).

Following this development, Tata Motors’ counter surged to a new 52-week high of Rs 665.40 on NSE.

In Q1FY23, the vehicle manufacturer registered a net loss of Rs 5,006.60 crore while revenues during the quarter stood at Rs 71,934.66 crore.

Consolidated revenue from operations climbed 42% year-on-year to Rs 1.02 lakh crore.

JLR revenue increased by 57% to £6.9 billion due to strong wholesales and a better mix, resulting in earnings before interest and taxes (EBIT) margins of 8.6% (+1,300 basis points or bps). The switch to BS6 Phase 2 reduced commercial vehicle (CV) volumes by 15% over the previous year.

However, EBIT margins increased to 6.5% (+370 basis points) as a result of the demand-pull approach and a more diverse composition. PV revenue increased by 11.10%, while EBIT increased by 1% (+10 basis points).

JLR wholesales for the quarter totalled 10,324 and 82,929 units, respectively. The luxury arms totalled 93,253 units, reflecting a 30% increase over the same quarter last year.

At around 9.42 AM, Tata Motors was trading 2.40% higher at Rs 654.80, against the previous close of Rs 639.45.

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