Tata Motors Limited (TML) has reported financial results for the fiscal year 2024 (FY24), marked by record-breaking revenues, profits, and significant reductions in debt. The company's consolidated revenues touched INR 437.9K Cr, with an all-time high EBITDA of INR 62.8K Cr and a net profit of INR 31.8K Cr. These figures represent substantial increases over the previous year, reflecting the company's robust performance across its automotive businesses.
In Q4FY24, TML continued its streak with revenues amounting to INR 120.0K Cr, showcasing a notable growth of 13.3%. The EBITDA for the quarter stood at INR 17.9K Cr, up by 26.6%, while the EBIT reached INR 11.0K Cr, marking a significant increase of INR 3.8K Cr. The company's profitability metrics also witnessed substantial improvements, with PBT at INR 9.5K Cr and a net profit of INR 17.5K Cr, representing increases of INR 4.4K Cr and INR 12.0K Cr, respectively, compared to the same period last year. Additionally, the company managed to further reduce its net automotive debt to INR 16.0K Cr, indicating sound financial management and strengthening its balance sheet.
The Board of Directors has proposed a final dividend of INR 3/- per Ordinary Share and INR 3.10 per A Ordinary Share, along with a special dividend of INR 3/- per Ordinary Share and INR 3.10 per A Ordinary Share, subject to approval by the shareholders. These dividends reflect the company's commitment to rewarding its shareholders for their continued support and trust in Tata Motors' growth trajectory.
Outlook
Despite cautious optimism surrounding domestic demand, Tata Motors remains confident in its outlook for FY25. The company anticipates a relatively weaker performance in the first half of the fiscal year but expects the premium luxury segment to remain resilient.
PB Balaji, Group Chief Financial Officer of Tata Motors, said, “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.”
Jaguar Land Rover
Jaguar Land Rover (JLR) has maintained its financial performance trajectory, achieving yet another milestone in the fourth quarter of the fiscal year. With revenue reaching £7.9 billion, marking an 11% increase compared to Q4FY23 and a 6% rise from Q3FY24, the company has once again demonstrated its resilience and growth. The full-year revenue for FY24 hit £29.0 billion, the highest ever recorded by JLR, showing 27% surge compared to the previous year.
In Q4, the Profit Before Tax (PBT) stood at £661 million, representing a significant increase of £293 million year-on-year (yoy). The EBIT margin reached 9.2%, marking a substantial improvement of 270 basis points (bps) yoy. This heightened profitability is attributed to enhanced volumes and reduced material costs, albeit offset partially by escalated marketing expenditure compared to the preceding year. Profit After Tax (PAT) for Q4 soared to £1.4 billion, a stark contrast to the £259 million profit recorded in the corresponding quarter of the previous year. For FY24, PBT totaled £2.2 billion, the highest since FY15, with a corresponding PAT of £2.6 billion. Notably, PAT includes the recognition of a deferred tax asset (DTA) worth £1.0 billion, reflecting a reassessment of future recoverability tax losses and allowances.
Commercial Vehicles
The domestic wholesale CV volumes of Tata Motors dipped by 7% yoy to 104.6K units, primarily due to increased pre-buy in Q4FY23 attributed to the BS6 Phase II transition. However, exports witnessed a 13% yoy increase, reaching 4.5K units. Despite the volume decline, revenues saw a marginal uptick of 1.6% yoy, reaching INR 21.6K Cr, driven by improved pricing and lower Variable Marketing Expenses (VMEs). Notably, EBITDA and EBIT margins stood at 12.0% and 9.6%, respectively, showing increases of 190 bps and 100 bps yoy.
Girish Wagh, Executive Director Tata Motors Ltd, said, “Our sharp focus on profitable growth resulted in the CV business recording its highest-ever revenues of ₹78.8K Cr and profits of ₹6.1K Cr in FY24. Going forward, we will intensify our efforts to grow market share, profitably and consistently, in every business segment by delivering more value to customers with innovative products, smarter services and holistic mobility solutions.”
Passenger Vehicles
In the fourth quarter, Tata Motors witnessed robust growth in its Passenger Vehicle (PV) segment, with volumes reaching 155.6K units, marking a significant 14.8% increase yoy. This growth was propelled by the introduction of new SUV facelifts and multiple power trains. Notably, the Nexon retained its position as the highest-selling SUV in FY24, with the Punch also ranking among the top 5 models sold in India.
Revenue in Q4 surged by 19% yoy to INR 14.4K Cr, while EBIT margins saw a noteworthy improvement of 150 basis points (bps) yoy, reaching 2.9%. This increase was attributed to operating leverage on improved volumes and savings in commodity costs. Additionally, the PV (Internal Combustion Engine) business delivered double-digit EBITDA margins, while the Electric Vehicle (EV) business achieved EBITDA positivity (before Research & Development spends) at 1.1%.
On a full-year basis, the PV business registered approximately 9% revenue growth and achieved its highest ever Profit Before Tax (bei) at INR 1.4K Cr, marking a significant increase of INR 0.7K Cr yoy.
Shailesh Chandra, Managing Director, TMPV and TPEM, said, “Our multi-powertrain approach and sharp focus on green technologies increased the penetration of CNG and electric vehicles to 29% in the overall portfolio. We sold 73.8K EVs during the year (up 48% vs FY23) and crossed milestone of 150,000 cumulative EV production. Overall, the business recorded its highest-ever turnover with annual volumes of 573.5K units, growing by 6.0% over FY23, and recorded highest ever profits of ₹1.4K Cr.”
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