Tata Motors Ltd. second quarter consolidated net profit exceeded expectations backed by strong Jaguar Land Rover (JLR) sales and grew to ₹3,764 crore as against a net loss of ₹945 crore in the same period last year.
During the quarter ended September 30, 2023, the company’s revenues grew 32.1% to ₹1,05,128 crore. All auto verticals continued their profitable growth trajectory.
The company’s net automotive debt reduced to ₹38,700 crore.
JLR revenues improved 30.4% to £6.9 billion. Strong wholesales and improved mix resulted in Earnings Before Income Tax (EBIT) margins of 7.3%.
Tata Motors’ Commercial Vehicles (CV) revenues improved by 22.3% and EBIT to 7.9% benefiting from higher realisations, richer mix and favourable commodity prices.
Passenger Vehicles (PV) revenues were marginally down 3% impacted by the transition to the new launches while EBIT margins improved by 140 bps to 1.8% due to savings in commodity costs, the company said.
On the outlook the company said, “We remain optimistic on demand despite external challenges and anticipate a moderate inflationary environment. We aim to deliver a stronger performance in H2, due to a healthy order book at JLR, strong demand for heavy trucks in CV and exciting new generation products in PV.”