Tata Motors posts 222 pc jump in Q4 net profit at Rs 17,410 crore
May 10 (IANS) Auto giant Tata Motors (NS:TAMO) on Friday reported a 222 per cent jump in its consolidated net profit at Rs 17,407.18 crore for the Jan-March quarter of 2023-24 on the back of robust sales at UK subsidiary Jaguar Land Rover.
Jaguar Land Rover which produces the famous Ranger Rover and top-selling Defender SUVs accounts for over 60 per cent of the consolidated revenue of Tata Motors.
The company’s revenue from operations increased 13 per cent to Rs 1,19,986.31 crore for the quarter under review from Rs 105,932.35 crore a year ago.
The Tata Motors board of direct directors recommended a final dividend of Rs 6 per Ordinary Share and Rs 6.20 per ‘A’ Ordinary Share for the financial year ending March 31, 2024.
PB Balaji, Group Chief Financial Officer, Tata Motors said: “It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows.
“The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years.”
Tata Motors is experiencing mixed signals on demand:
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Strong Demand Recently: Tata Motors has reported strong demand recently, with a 46% jump in net profit for the March quarter compared to last year [1]. This is driven by all three of their business segments: passenger vehicles, commercial vehicles, and Jaguar Land Rover.
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Potential Slowdown Expected: However, Tata Motors is cautiously optimistic about future domestic demand, expecting the first half of the current fiscal year (April-September 2024) to be weaker [1]. This could be due to factors like high base effect (strong sales in the previous year) and external factors like elections and heatwaves.
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Strength in Specific Segments: Despite the overall caution, Tata Motors expects continued growth in the SUV and electric vehicle segments, driven by new product launches [4, 3]. The premium luxury segment is also likely to stay resilient [1].
Overall, Tata Motors is in a good position with strong recent performance but acknowledges some potential headwinds in the near future. They are confident in their ability to navigate these challenges and deliver a strong performance in the long run.