Tata Motors Q1FY25 profit jumps 74% YoY to Rs 5,566 cr

The Mumbai-based automaker's revenue from operations for April-June rose by 5.7 percent to Rs 1,07,316 crore, compared to Rs 1,01,528 crore a year earlier.

Tata Motors' shares saw a significant rise of over 11 percent in the past week, reaching Rs 1,144.6 each on the BSE, though they fell by 1.21 percent on the NSE ahead of the results.

The company's consolidated EBITDA increased by 19 percent year-on-year to Rs 15,785 crore, with the operating margin expanding to 14.6 percent from 12.9 percent in the same period last year.

The luxury division, Jaguar Land Rover (JLR), experienced a 5.4 percent increase in revenue for April-June, totalling GBP 7.3 billion, with EBIT margins improving by 30 basis points to 8.9 percent, driven by favourable volume, mix, and material cost improvements.

In the domestic market, Commercial Vehicle (CV) revenues grew by 5.1 percent year-on-year to Rs 17,800 crore, while EBIT margins improved by 240 basis points to 8.9 percent, benefiting from better realizations and material cost savings.

Passenger vehicle revenues, however, declined by 7.7 percent, reflecting "challenging market conditions," but EBITDA margins improved by 50 basis points to 5.8 percent, driven by material cost reductions.

Tata Motors also announced that the proposed demerger of the company into two separate listed entities is expected to be completed in 12 to 15 months, while the merger of Tata Motors Finance with Tata Capital is anticipated to conclude within the next 9 to 12 months.

Tata Motors projects muted global demand but anticipates a gradual improvement in domestic demand for the rest of the year, supported by ongoing infrastructure investments, favourable monsoons, positive macroeconomic conditions, and festive demand.

The company also expects commodity prices to remain stable.