Tata Motors reported a net profit of ₹3,202 crore for the quarter that ended in June. The company had reported a loss of ₹5,006 crore during the same quarter last year.

The company, however, registered a 40 per cent drop in profit when compared to the March quarter when it had reported ₹5,407 crore in profits.

Tata Motor’s JLR reported the highest free cash flow ever of £451 million (₹47,36,08,17,900).

The total revenue from operations for Tata Motors rose by 42.12 per cent year-on-year to ₹1,02,236 crore (₹71,934 crore). The revenue saw a dip of 3.48 per cent against the March quarter with ₹1,05,932 crores.

The company’s consolidated automotive debt was reduced to ₹41,700 crore, ₹8200 crore debt in the Indian market, and ₹2,500 crore reduced in the quarter.

The company that is aiming to be net debt free in the domestic market this year, stated that the domestic capex will be at ₹8,000 crore.

Tata Motors cash flow was at Rs.2,500 crore in Q1 FY24 driven by strong improvement in cash profits.

Robust demand

“The passenger vehicle industry in Q1 FY24 witnessed robust demand driven by new launches, especially in the SUV segment and EVs. At Tata Motors, we continued the growth trajectory by registering quarterly sales of 140,450 cars and SUVs in Q1 FY24 (up 8 per cent against Q1 FY23). In line with industry trends, SUVs continued to spearhead sales contributing approximately 64 per cent while sales of cars were buoyed by the multi-powertrain offerings of the Tiago and Altroz.,” said Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Limited.

“We launched Altroz iCNG during the quarter and it has received much acclaim and an excellent response from customers. Continuing with our thrust on EVs, in Q1 FY24, we recorded the highest-ever quarterly sales of 19,346 vehicles (up around 105 per cent against Q1 FY23). The excellent market response to Tiago EV catalysed this growth while demand for other EVs remained consistent. Going forward, we expect a stable supply chain and robust demand with the onset of the festive season in the second half of Q2 FY24,” he added.

EV penetration

The company’s EV penetration increased to 14 per cent with 19,300 units of electric vehicles during the quarter. The quarter saw the highest-ever sales of EV sales, the company said. The company’s CNG penetration stood at 8 per cent during the quarter.

The commercial vehicle domestic wholesale business declined by 14.1 per cent at 82,400 units impacted by seasonality and the transition to BS 6 Phase 2 emission norms. The domestic retail commercial vehicle business was down by 14.3 per cent year-on-year with 77,600 units.

JLR performance

JLR revenue was up by 57 per cent year-on-year at £6.9 billion (₹7,24,65,31,80,000). The free cash flow over the last three quarters was £1.8 billion (₹1,89,03,60,42,480). The company stated that going ahead with the production of JLR could see an impact owing to the short schedule of production that could impact the next quarter.

“We have had a strong start to the financial year and delivered our highest production levels in nine quarters and our highest Q1 cash flow on record,” Adrian Mardell, Chief Executive Officer of JLR.

No major hikes

The company stated that it is not planning to undertake any major price hikes on its vehicles but will evaluate the overall market conditions going ahead.

“There will be no major price hikes but price modifications looking at inflation. We expect moderate inflation domestically,” said PB Balaji.

Tata Motors also pointed out that the cost of lithium used for the manufacturing of electric vehicle components is at an all-time high with price moderation expected in the next quarter.