Corporate Performance     

Published: February 15, 2025
Updated: February 15, 2025

Tata Motors

Moving into top gear

On a consolidated basis, during the Q3 FY25, Tata Motors (TML) has delivered revenues of Rs 113.6 k crore (up 2.7%), EBITDA of Rs 15.5 k crore (13.7%, down 60 bps) and EBIT of Rs 10.0 k crore (8.9%, up 60 bps), witnessing strong improvement over Q2FY25 as supply challenges eased. PBT for Q3 FY25 stood at Rs 7.7 k crore, down Rs 75 crore, while net profit was Rs 5.6 k crore. For YTD FY25, the business reported a strong PBT of Rs 22.3 k crore, an im provement of Rs 2.8 k crore over the previous year.

JLR delivered a robust performance in Q3FY25 with record quarterly revenues, the highest EBIT margin in a de cade and a ninth successive profitable quarter. CV revenues declined on account of lower volumes and mix. However, EBITDA margins improved to 12.4% (up 130 bps), primarily reflecting material cost saving and the impact of PLI. PV rev enues were down 4.3%. However, EBITDA margins were up by 120 bps at 7.8% due to cost controls and PLI. The company received the sanction of automotive PLI in December 2024. Accordingly, an income of Rs 351 crore has been recognized.

The company expects underlying domestic demand to improve gradually on account of infrastructure spends, a slew of exciting product launches and stable interest rates. While JLR wholesales are expected to improve further in Q4 FY25, the management remains watchful on the overall demand situation, particularly in China.

PB Balaji, Group Chief Financial Officer, Tata Motors, said, “In Q3, the performance of all businesses improved sequen tially. For ytd FY25, our business grew 1.6% over the previous year to Rs 323.0 k crore and delivered a robust PBT of Rs 22.3 k crore (+14.5%). The fundamentals of the business are strong, and therefore, despite external challenges, we are confident of delivering another strong performance this year.”

HIGH-FLIER JLR

JLR delivered a robust performance in Q3 FY25 with record Q3 revenues and the highest EBIT margin in a decade, and a ninth successive profitable quarter. Revenue for the quarter was £ 7.5 billion, up 1.5% yoy, while ytd rev enue at £ 21.2 billion was flat yoy. Compared to Q2 FY25, revenue was up 16%, driven by higher wholesales follow ing supply disruptions in Q2FY25. PBT in Q3 was £ 523 million, down from £ 627 million a year ago, while ytd FY25 PBT was £1.6 billion, up 7% yoy. The EBIT margin was 9% (up 20 bps yoy). The increase in profitability yoy reflects higher volumes, improved mix and a reduction in depreciation and amortisation (D&A), driven by Castle Bromwich production cessation and ICE end of life exten sions, partially offset by an increase in VME, warranty costs and unfavourable FX revaluation.

Looking ahead, while mindful of the challenging eco nomic backdrop, the company is on track to achieve its prof itability and cash flow targets in FY25, with EBIT margin e”8.5% and positive net cash. Adrian Mardell, JLR’s Chief Executive Officer, said, “JLR has delivered a robust performance in the third quarter of our financial year, and further milestones in our ‘Reimagine’ strat egy. Thanks to our people and partners, we achieved record revenue and our best EBIT margin in a decade, and our electrification plans are progressing. We revealed the beauti ful, reimagined Jaguar design vision — Type 00 — in Miami, and later this year we will launch Range Rover Electric.”

CV SALES STEADY

In Q3FY25, domestic wholesale CV volumes were 91.1 k units, marginally lower as compared to 91.9 k units in Q3FY24, but marking a significant improvement as compared to 79.8 k units recorded in Q2FY25. Propelled by a resurgence in con struction and mining activities post-monsoon, plus the festive season demand, the HCV segment witnessed robust sequen tial growth. Exports were at 4.5 k units, down 6% yoy. Rev enues were down by 8.4% yoy to Rs18.4 k crore, but EBITDA margins improved to 12.4% (up 130 bps yoy), led by savings in commodity costs and PLI incentive (90 bps). On a year-to date basis, the CV business delivered an EBITDA margin of 11.6% (+120 bps yoy) and PBT of Rs 4.6 k crore.

Looking ahead, Tata Motors expects demand to im prove in Q4FY25 across most segments. The key aspects to watch out in 2025 will be the government’s focus on infra structure spend and growth in end-use segments, which will augur well for the commercial vehicles industry. The com pany continues to drive actions to reduce the impact of cyclicality in results and deliver strong margins and RoCE.

‘SMART’ ERA

Girish Wagh, Executive Director, Tata Motors Ltd, said, “In Q3FY25, the HCV segment witnessed robust sequential re covery, even as the yoy sales declined 9% due to limited growth in end-use segments. The ILMCV segment and passenger car rier segment witnessed ~3% and ~30% yoy growth, whereas the SCV segment experienced a marginal decline due to ongo ing financing challenges. The business has delivered strong EBITDA and EBIT margins of 12.4% and 9.6% respectively, with cost control and reflecting the PLI incentive.” He continued, “At the Bharat Mobility Expo, we un veiled a bold new era in mobility, showcasing 14 smart vehicles, all integrated with ADAS, alongside 6 cutting edge intelligent solutions that provide real-time perfor mance insights, and 4 advanced aggregates. With relent less innovation and agility, we will continue to redefine the future of mobility with sustainable, intelligent and cutting edge solutions.”

In support of his growth optimism for CV in Q4, Mr Wagh explained, “Diesel consumption, which had dropped by al most 15% yoy, improved in Q3 with a 5% yoy growth, an indicator of higher utilisation. Tangible progress in infrastruc ture projects would also create favourable conditions for the HCV sector.”

PV SALES GOOD

PV volumes for the quarter were steady at 140.0 k units (+1.1% yoy), while revenues in Q3FY25 were down 4.3% yoy at Rs 12.4 k crore. EBITDA margins in Q3FY25 were 7.8%, up 120 bps on a yoy basis, with cost reduction actions and incentives more than offsetting adverse realizations. In line with the growth rates seen in the first nine months, the PV industry is poised for moderate growth in FY25. Segment shifts in the industry are likely to continue with strong growth in the SUV segment, and continued trac tion for emission-friendly powertrains. With multiple prod uct launches, innovations and a strengthened multi powertrain strategy, Tata Motors is well poised for further growth in CY 25

NEW LAUNCHES

Shailesh Chandra, Managing Director TMPV and TPEM, said, “In Q3FY25, we recorded wholesales of 140 k units (1.1% growth over Q3FY24) and retail sales growth of 6% over Q3FY24. This has allowed us to sharply reduce our channel inventory ahead of Q4FY25. In the EV segment, we registered 19% growth in the domestic personal seg ment, although our fleet volumes declined yoy due to the expiry of FAME II subsidy. Our new product launches, in cluding Curvv, Curvv.ev, Nexon CNG and Nexon.ev 45, continue to see strong customer traction.”

He continued, “Overall, in Q3FY25, the business deliv ered resilient performance, with volumes and profitability im proving sequentially. At the Bharat Mobility Global Expo 2025, we unveiled our ‘Future of Mobility’ portfolio blending inno vative design and smart engineering, with a profound under standing of customer needs. Looking ahead, we remain agile and optimistic as we continue to leverage the demand for our new products, expand our network and focus on micro-mar kets to increase our volumes and marketshare.”