Tata Motors shares rise 3% after Q2 results as Street buys management commentary for H2

For the quarter ended September 30, 2024, the auto major reported an 11.18% year-on-year (YoY) fall in its consolidated net profit for the quarter ended September 30, 2024 (Q2 FY25) to ₹3,343 crore against ₹3,764 crore registered in the year-ago period.

Total revenue from operations came in at ₹101,450 crore, down 3.49% against ₹105,129 crore logged in the September 2023 quarter.

Basic earnings per share (EPS) for the quarter under review stood at ₹9.72 against ₹9.81 in the year-ago period. 

Its EBITDA, or earnings before interest, taxes, depreciation, and amortisation, came in at ₹11.6K crore (11.4%, down 230 bps), while EBIT stood at ₹5.6K crore (5.6%, down 190 bps) in a challenging external environment. 

Jaguar Land Rover (JLR) revenue was down by 5.6% to £6.5b. JLR's performance was impacted by temporary supply constraints, which resulted in EBIT margins of 5.1% (down 220 bps). CV revenues were down by 13.9%, but EBITDA margins improved to 10.8% (up 40 bps) on favourable pricing and material cost savings despite adverse volumes.

PV revenues were down by 3.9%, but EBITDA margins were steady at 6.2% (down 30 bps) through mix improvements and cost reduction actions.

PB Balaji, Group Chief Financial Officer, Tata Motors, said: “Growth in the quarter was impacted due to significant external challenges as highlighted earlier. Overall, the business fundamentals remain strong, and we remain focused on our agenda of driving growth, competitiveness, and free cash flows. As the supply challenges ease and demand picks up, we are confident of steady improvement in our performance and delivering a strong H2.”