News

Published: February 3, 2024
Updated: February 3, 2024

Tata Motors' Remarkable Surge: Q3 Net Profit Soars 137% to Rs 7,025 Crore

Tata Motors, a key player in the automotive industry, has unveiled stellar Q3 results, showcasing an extraordinary 137% surge in net profit. The financials for the quarter ending December 2023 reveal a net profit of Rs 7,025 crore, a substantial rise from Rs 2,958 crore in the same period the previous year.

Impressive Financial Landscape:

Total revenue for Q3FY24 witnessed an impressive 25% growth, reaching Rs 1,10,577 crore compared to Rs 88,488 crore in the corresponding period of the preceding fiscal. The profit before tax also soared to Rs 7,493 crore, marking a significant increase from Rs 3,202 crore in the comparable period in the previous fiscal.

JLR Sales Surge:

An integral part of Tata Motors' success story is the robust performance of its UK arm, Jaguar Land Rover (JLR). Sales for JLR rose by an impressive 27% in the October to December period, contributing to the overall positive trajectory of Tata Motors.

Striking Financial Metrics:

The financial metrics paint a compelling picture of Tata Motors' strengthened position. The revenue from JLR climbed to Rs 76,665 crore in the last quarter, showcasing an uptick from Rs 58,863 crore in the December 2022 quarter. Additionally, the debt to equity ratio of the Tata Group firm fell to 1.58 times in Q3, a remarkable improvement from 3.68 in the third quarter of the previous fiscal.

Earnings Per Share (EPS) Soars:

Earnings per share (EPS) in Q3 witnessed a remarkable climb to Rs 18.32 in the last quarter, a significant leap from Rs 7.71 in Q3 of the previous fiscal year. These metrics underscore Tata Motors' commitment to financial stability and sustained growth.

Leadership Perspective:

PB Balaji, Group Chief Financial Officer of Tata Motors, expressed satisfaction with the company's strategic execution, delivering strong results for six consecutive quarters. Balaji affirmed the company's confidence in sustaining this performance in the coming quarters and emphasized their commitment to de-leveraging plans.

Market Response:

The earnings announcement, made post-market hours on Friday, had a subtle impact on Tata Motors' shares, settling flat at Rs 878.80 against the previous close of Rs 878.35 on BSE.

Resilient business model works wonders:

Tata Motors' outstanding Q3 results signify not only a remarkable financial surge but also a testament to their resilient business strategies. The surge in net profit, coupled with positive sales figures and strengthened financial metrics, positions Tata Motors as a driving force in the automotive industry. As they chart a path of consistent success, the company's commitment to sustained growth and strategic execution shines through, promising a robust future in the quarters to come.