Tata Motors has released its financial results for the third quarter of fiscal year 2025 (Q3 FY25). Below is a detailed analysis:
1. Revenue and Profitability
- Consolidated Revenue: The company reported revenues of ₹113,575 crore, marking a 2.7% increase from ₹110,577 crore in the same quarter of the previous year.
- Net Profit: Net profit stood at ₹5,451 crore, a 22% decline compared to ₹7,025 crore in Q3 FY24.
2. Segment Performance
- Jaguar Land Rover (JLR):
- Revenue: Achieved record quarterly revenue of £7.5 billion, a 1.5% increase from the previous quarter.
- EBIT Margin: Reported an EBIT margin of 9.0%, the highest in a decade.
- Profitability: This marks the ninth consecutive profitable quarter for JLR. tatamotors.com
- Commercial Vehicles (CV):
- Sales Volume: Total CV sales were 95,770 units, a slight 1% decrease year-over-year.
- Revenue: Recorded revenues of ₹18,400 crore, an 8.4% decline from the previous year.
- EBITDA Margin: Improved to 12.4%, up by 130 basis points, primarily due to material cost savings and the impact of the Production Linked Incentive (PLI) scheme. tatamotors.com
- Passenger Vehicles (PV):
- Sales Volume: Total PV sales reached 139,829 units, a 1% increase year-over-year.
- Revenue: Stood at ₹12,400 crore, a 4.3% decrease from the previous year.
- EBITDA Margin: Increased by 120 basis points to 7.8%, attributed to cost controls and benefits from the PLI incentive. tatamotors.com
3. Market Reactions
- Stock Performance: Following the earnings announcement, Tata Motors’ shares declined by approximately 8.5%, influenced by the drop in net profit and concerns over JLR’s performance.
4. Outlook
- Future Projections: The company anticipates a gradual improvement in domestic demand, driven by infrastructure spending, new product launches, and stable interest rates. For JLR, while wholesales are expected to rise in Q4 FY25, the company remains cautious about the overall demand environment, especially in China. tatamotors.com
In summary, Tata Motors experienced mixed results in Q3 FY25, with revenue growth offset by a decline in net profit. JLR’s strong performance provided a positive highlight, while the CV and PV segments faced challenges. The company remains optimistic about future demand recovery and is focused on strategic initiatives to enhance profitability.
