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regular-article-logo Sunday, 14 July 2024

Tata Motors posts net profit of Rs 3,202.80 crore in first quarter of current fiscal

Homegrown auto major had reported loss of Rs 5,006.60 crore in corresponding previous quarter

Our Special Correspondent Mumbai Published 26.07.23, 05:47 AM
Representational image

Representational image File picture

Tata Motors on Tuesday beat Street estimates to post a net profit of Rs 3,202.80 crore in the first quarter of the current fiscal following a strong performance by Jaguar Land Rover (JLR).

The homegrown auto major had reported a loss of Rs 5,006.60 crore in the corresponding previous quarter. Analysts were expecting the company to report a net profit of around Rs 2,600 crore.

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The quarter saw revenues cross the Rs 1 trillion mark at Rs 101,528.49 crore against Rs 71,227.76 crore a year ago.

JLR put up a robust show with its revenues jumping 57 per cent to £6.9 billion compared with £4.4 billion in the same period of the previous year. Profit before tax stood at £435 million against a loss of £524 million in the previous year and a number of £368 million in the preceding three months.

JLR added that during the quarter, its free cash flow (FCF) stood at £451 million, which is the highest first quarter cash flow, and that the cumulative FCF over the last three quarters stands at £1.8 billion. It pointed out that the first quarter retail and wholesales increased significantly over the previous year reflecting the continuing improvement in supply constraints.

Further, the order book remains strong with a growth of more than 76 per cent for the Range Rover, Range Rover Sport and Defender. During the quarter, its EBIT (earnings before interest and taxes) margin increased to 8.6 per cent from 6.5 per cent in the preceding quarter, reflecting higher wholesales and pricing, partially offset by inflation and other costs.

The company’s passenger vehicle division reported an 11 per cent increase in revenue to Rs 12,839 crore on better pricing. In terms of volume the segment saw a growth of 8 per cent at 1,40,400 units.

Tata Motors added that its EBITDA (earnings before interest, tax, depreciation & amortisation) margins were lower by 80 basis points over the previous year at 5.3 per cent.

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