Tata Motors Ltd. reported a profit for the fourth consecutive quarter in the three-month period ended September but missed analyst estimates.
The automaker's consolidated net profit stood at Rs 3,764 crore, against a net loss of Rs 944.6 crore in the same quarter last year, according to an exchange filing on Thursday. That compares with the Rs 4,520 crore consensus estimate of profit by analysts tracked by Bloomberg.
Tata Motors Q2 FY24 Highlights (YoY)
Revenue rose 32% to Rs 1,05,128 crore (Bloomberg estimate: Rs 1,08,110 crore).
Ebitda increased 147% to Rs 13,767 crore (Bloomberg estimate: Rs 13,766 crore).
Ebitda margin stood at 13.1% versus 6.99% last year (Bloomberg estimate: 12.7%).
Tata Motors' passenger vehicle sales fell 2.4% year-on-year to 1.39 lakh units, while the commercial vehicle sales rose 3.5% to 1.04 lakh units in the quarter.
Its British subsidiary Jaguar Land Rover's sales, excluding the China joint venture, rose 29% to 96,817 units.
The continued improvement in the supply of specialised semiconductors helped the company ramp up production and sales.
The margin expanded significantly, with improvement in profitability across businesses, including passenger vehicle, commercial vehicle and luxury carmaker JLR.
The carmaker expects a stronger performance in the second half of the ongoing fiscal, with healthy order book at JLR, robust demand for heavy trucks, and new products in the passenger vehicle portfolio.
"With a strong product pipeline, a seasonally stronger H2 and continued focus on cash accretive growth, we are confident of sustaining this momentum," PB Balaji, group chief financial officer at Tata Motors, said in a statement.
JLR is on track to post free cash flow of £2 billion in FY24 and reduce net debt to below £1 billion by the end of the fiscal, the company said. Net debt reduced to £2.2 billion in the September quarter.
Tata Motors' shares closed 1.6% higher, before the results were announced, as compared with a 0.76% rise in the benchmark Nifty 50.
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