Tata Motors Q4 Results: Profit Jumps Over Threefold On Deferred Tax Gains

Net income of Tata Motors Ltd. surged more than threefold in the fiscal fourth quarter due to deferred tax gains.

Consolidated net profit of the Nexon maker rose 219% over the previous year to Rs 17,529 crore in the three months ended March 31, 2024, on the back of revenue that rose 13.3% year-on-year to Rs 1.2 lakh crore, according to an exchange filing on Friday.

Analysts polled by Bloomberg had estimated the top line at Rs 1.21 lakh crore and the bottom line at Rs 6,966.98 crore.

• Revenue up 13.3% to Rs 1.2 lakh crore (Bloomberg estimate: Rs 1.21 lakh crore)

• Ebitda up 32.8% to Rs 16,995 crore (Bloomberg estimate: Rs 17,406.73 crore)

• Ebitda margin at 14.2% versus 12.1% (Bloomberg estimate: 14.4%)

• Net profit up 218.9% to Rs 17,529 crore (Bloomberg estimate: Rs 6,966.98 crore)

Note: One basis point is one-hundredth of a percentage point.

The surge in the bottomline is due to a deferred tax gain of Rs 9,480 crore, largely on account of Jaguar Land Rover---the carmaker's UK-based unit.

The Tata Motors board has now recommended a final dividend of Rs 3/share and a special dividend of Rs 3 per share.

For the full fiscal, net profit rose 9.23% year-on-year to Rs 31,807 crore on the back of revenue that jumped 26.6% year-on-year to Rs 4,37,928 crore. Those are the highest ever financials posted by the Tata Group firm.

With that, Tata Motors' India business has become debt free.

"The India business is now debt free, and we are on track to become net automotive debt free on a consolidated basis in FY25," PB Balaji, group chief financial officer at Tata Motors, said in a statement. "The businesses are executing well on distinct strategies and, therefore, we are confident of sustaining this strong performance in the coming years.”

On Friday, Tata Motors shares rose 1.62% to Rs 1,046.85 apiece on the BSE even as the benchmark Sensex ended the day 0.36% higher at 72,664.47 points.