Tata Motors shares tank 9% to hit 52-week low after 22% YoY drop in Q3 net profit; check details

The Tata Motors stock dived as much as 9.2% on Thursday morning on the National Stock Exchange of India (NSE) to hit its 52-week low of ₹683.2 apiece. The stock is now down over 19% in the last one year.

On Wednesday, Tata Motors posted a 21.93% decline year-on-year in its consolidated net profit to ₹5,578 crore for Q3FY25, compared to ₹7,145 crore in the year-ago period. Its revenue from operations rose by just 2.7% to ₹1,13,575 crore during the quarter compared to ₹1,10,577 crore reported in the same period of the preceding fiscal. The numbers were weighed down by a slowdown in its Jaguar-Land Rover (JLR) business.

Operating profit, or earnings before interest, tax, depreciation, and amortisation (Ebitda), stood at ₹15,521 crore, down 1.9% year-on-year. Ebitda margins also fell 60 basis points to 13.7% compared with a year ago.

In terms of specific segments, the passenger vehicles business recorded a 4.3% year-on-year revenue decline to ₹12,354 crore in the December quarter. However, electric vehicle sales in the passenger vehicle division grew 19% year-on-year.

The commercial vehicle (CV) business also saw an 8.4% revenue drop to ₹18,431 crore for the December quarter compared with a year ago. Meanwhile, revenue from the JLR business grew by a tepid 1.5% to £7.5 billion compared with the year-ago quarter.

In its earnings statement, Tata Motors expects JLR’s wholesale volumes to improve in the fourth quarter of financial year 2024-25. However, it remained cautious on the overall demand outlook. “JLR wholesales to improve further in Q4 backed by retail growth; remain watchful on the overall demand situation, particularly China,” the company said.

Shares of Tata Motors were trading 6.82% lower at ₹701 apiece on the NSE at 10:53 am.