Tata Motors reports Rs 3,764 crore profit in Q2FY24 vs loss year ago

3 Nov 2023 , 11:32 AM

Tata Motors Ltd recorded a net profit of Rs 3,764 crore for the quarter ending September 2023, as compared to a net loss of Rs 945 crore the previous year.

Consolidated income from operations climbed 32% year on year (YoY) to Rs 1.05 lakh crore, little less than the expected Rs 1.07 lakh crore.

During the quarter, the automaker’s operational performance improved dramatically, with consolidated profits before interest, taxes, depreciation, and amortization (EBITDA) increasing 93% year on year to Rs 21,214 crore.

As a consequence, the operating margin jumped 638 basis points year-on-year to 20.18%.

The business stated that robust profitable growth across auto verticals fuelled the topline in the quarter, while healthy wholesale sales and improved mix assisted margin expansion.

Overall financial performance is likely to bolster as a result of a more diverse mix, ongoing low-break-even in JLR, CV’s demand-pull approach, and improved profitability in PV/EV.

Jaguar Land Rover Automotive Plc in the United Kingdom reported a significant 30.4% y-o-y increase in revenue to 6.86 billion sterling pounds, driven by stronger wholesale sales, better mix, cost savings, and investment in demand creation.

EBIT margin was 7.3% in the third quarter and 8% in the first half. In light of the outstanding performance in the first half, JLR has raised its EBIT margin target for FY24 to roughly 8% from 6% before.

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