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Leading auto company Tata Motors‘ third-quarter profit missed the Street estimates by a wide margin as the bottom line fell 22% YoY to Rs 5,451 crore. The profit was way below the ET Now poll estimates of INR 6,791 crore.
However, the revenue from operations increased 3% YoY to INR 1.13 lakh crore.
Consolidated EBITDA during the third quarter came in at INR 15,500 crore, which is a strong increase over the preceding September quarter as supply-related challenges eased.
On a sequential basis, earnings improved substantially. The profit jumped 63% from INR 3,343 crore posted in the second quarter. “The fundamentals of the business are strong and therefore despite external challenges we are confident of delivering another strong performance this year,” said PB Balaji, Group CFO, Tata Motors.
Segment-wise, CV revenues were down 8.4% YoY to INR 18,400 crore. However, EBITDA margins improved 130 bps YoY to 12.4%, led by savings in commodity costs and PLI incentives.
Within the CV segment, HCV category witnessed robust sequential recovery, even as the YoY sales declined 9% due to limited growth in end-use segments.
The ILMCV and passenger carrier segments witnessed 3% and 30% YoY growth, respectively, whereas the SCV segment experienced a marginal decline due to ongoing financing challenges.
Passenger vehicles
PV volumes for the quarter were steady at 1,40,000 units, while revenues in Q3FY25 were down 4.3% YoY at INR 12,400 crore. EBITDA margins in Q3FY25 were 7.8% up 120 bps on a YoY basis, with cost reduction actions and incentives more than offsetting adverse realizations.
In the EV segment, the company registered 19% growth in the domestic personal segment, although fleet volumes declined YoY due to the expiry of the FAME II subsidy.
JLR
JLR delivered a healthy performance in Q3FY25 with record Q3 revenue and the highest EBIT margin in a decade, and a ninth successive profitable quarter.
Revenue for the quarter was £7.5 billion, up 1.5% YoY, while YTD revenue at £21.2 billion was flat YoY.
Compared to Q2, revenue was up 16%, driven by higher wholesales following supply disruptions in the preceding quarter. PBT was £523 million, down from £627 million a year ago.
“The increase in profitability year-on-year reflects higher volumes, improved mix and a reduction in depreciation and amortisation (D&A) driven by Castle Bromwich production cessation and ICE end of life extensions,” Tata Motors said in a release.
Looking ahead, JLR is aware of the challenging economic backdrop, but it claims to be on track to achieve its profitability and cash flow targets in FY25, with EBIT margin greater than 8.5% and positive net cash.
Overall, Tata Motors said it expects underlying domestic demand to improve gradually on account of infrastructure spending, a slew of exciting product launches and stable interest rates.
“While JLR wholesales are expected to improve further in Q4 FY25, we remain watchful on the overall demand situation, particularly in China,” it said.
On Wednesday, Tata Motors shares closed nearly 4% higher to INR 754.8 on the NSE.
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Consolidated EBITDA during the third quarter came in at INR 15,500 crore, which is a strong increase over the preceding September quarter as supply-related challenges eased.
“>
Leading auto company Tata Motors‘ third-quarter profit missed the Street estimates by a wide margin as the bottom line fell 22% YoY to Rs 5,451 crore. The profit was way below the ET Now poll estimates of INR 6,791 crore.However, the revenue from operations increased 3% YoY to INR 1.13 lakh crore.
Consolidated EBITDA during the third quarter came in at INR 15,500 crore, which is a strong increase over the preceding September quarter as supply-related challenges eased.
On a sequential basis, earnings improved substantially. The profit jumped 63% from INR 3,343 crore posted in the second quarter. “The fundamentals of the business are strong and therefore despite external challenges we are confident of delivering another strong performance this year,” said PB Balaji, Group CFO, Tata Motors.Segment-wise, CV revenues were down 8.4% YoY to INR 18,400 crore. However, EBITDA margins improved 130 bps YoY to 12.4%, led by savings in commodity costs and PLI incentives.
Within the CV segment, HCV category witnessed robust sequential recovery, even as the YoY sales declined 9% due to limited growth in end-use segments.
The ILMCV and passenger carrier segments witnessed 3% and 30% YoY growth, respectively, whereas the SCV segment experienced a marginal decline due to ongoing financing challenges.
Passenger vehicles
PV volumes for the quarter were steady at 1,40,000 units, while revenues in Q3FY25 were down 4.3% YoY at INR 12,400 crore. EBITDA margins in Q3FY25 were 7.8% up 120 bps on a YoY basis, with cost reduction actions and incentives more than offsetting adverse realizations.
In the EV segment, the company registered 19% growth in the domestic personal segment, although fleet volumes declined YoY due to the expiry of the FAME II subsidy.
JLR
JLR delivered a healthy performance in Q3FY25 with record Q3 revenue and the highest EBIT margin in a decade, and a ninth successive profitable quarter.
Revenue for the quarter was £7.5 billion, up 1.5% YoY, while YTD revenue at £21.2 billion was flat YoY.
Compared to Q2, revenue was up 16%, driven by higher wholesales following supply disruptions in the preceding quarter. PBT was £523 million, down from £627 million a year ago.
“The increase in profitability year-on-year reflects higher volumes, improved mix and a reduction in depreciation and amortisation (D&A) driven by Castle Bromwich production cessation and ICE end of life extensions,” Tata Motors said in a release.Looking ahead, JLR is aware of the challenging economic backdrop, but it claims to be on track to achieve its profitability and cash flow targets in FY25, with EBIT margin greater than 8.5% and positive net cash.
Overall, Tata Motors said it expects underlying domestic demand to improve gradually on account of infrastructure spending, a slew of exciting product launches and stable interest rates.
“While JLR wholesales are expected to improve further in Q4 FY25, we remain watchful on the overall demand situation, particularly in China,” it said.
On Wednesday, Tata Motors shares closed nearly 4% higher to INR 754.8 on the NSE.