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MUMBAI
Driven by an uptick in SUV sales (comprising of 50 per cent of overall sales) Tata Motors reported a record jump in its consolidated net profit with ₹17,407 crore reported in the March quarter as against ₹5,407 crore reported during the same quarter.
The board of directors have recommended a dividend of ₹6 per ordinary share, subject to approval by the shareholders
The total revenue from operations registered 13.2 per cent growth, with ₹1,19,986 crore for the March quarter compared with ₹1,05,932 crore reported during the same quarter last year.
The India business for the company became debt free as the company’s consolidated automotive debt was reduced to ₹16,000-crore.
“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,” said PB Balaji, Group Chief Financial Officer, at Tata Motors.
Tata Motors had a cash flow of ₹26,900 crore in Q4 compared with ₹7,800 crore in FY23.
Soaring sales
“Tata Motors recorded its third consecutive year of highest sales volumes, with 6 per cent growth in wholesales and 10 per cent in retail sales over FY23. Our multi-powertrain approach and sharp focus on green technologies increased the penetration of CNG and electric vehicles to 29 per cent in the overall portfolio. We sold 73.8K EVs during the year (up 48 per cent vs FY23) and crossed the milestone of 150,000 cumulative EV production. Overall, the business recorded its highest-ever turnover with annual volumes of 573.5K units,” said Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd and Tata Passenger Electric Mobility Ltd.
EV business
The company’s EV penetration increased to 13 per cent during the quarter. The company’s CNG penetration stood at 15 per cent during the quarter.
The company stated it would work on market development to step up electric vehicle penetration.
The commercial vehicle business saw revenue of ₹21,600 crore during the quarter and the domestic wholesale business saw a 7 per cent decrease year-on-year at 104,600 units on account of increased pre-buy in Q4 FY23 due to BS6 Phase ll transition
JLR performance
Tata Motors JLR reported a free cash flow of £892 million for Q4.
JLR revenue was up by 11 per cent to £7.9 billion in Q4. The net debt for JLR was reduced to £0.7 billion. The company stated that investment spending is expected to increase to £3.5 billion and become net zero during FY25.
“We have delivered a record financial performance for the company, generating a free cash flow of £2.3 billion, enabling us to reduce net debt to £0.7 billion,” said Adrian Mardell, Chief Executive Officer of JLR.
Production uptick
The company, which is currently manufacturing 55,000 passenger vehicle units, plans to increase its production.
“We are planning to increase the production, and with the Sanand plant, it will be taken to 80,000 vehicle units per month,” added PB Balaji.
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