Tata Motors (TML) reported a strong Q2 FY24 performance, with revenues of ₹105.1K Cr (up 32.1%), EBITDA of ₹14.4K Cr (up 86.4%), and EBIT of ₹7.8KCr (+₹5.9KCr). The auto verticals continued their profitable growth trajectory. PBT (bei) improved by ₹7.9KCr to ₹6.1KCr, and net profit was ₹3.8KCr. In H1 FY24, the business reported a strong PBT (bei) of ₹11.4KCr, an improvement of ₹18.2KCr over the previous year. Net Automotive debt reduced to ₹38.7KCr.
JLR revenues improved 30.4% to £6.9b, with EBIT margins of 7.3% (+630bps). CV revenues improved by 22.3% and EBIT improved to 7.9% (+560bps), benefiting from higher realizations, richer mix, and favorable commodity prices. PV revenues were marginally down 3.0% impacted by the transition to new launches, but EBIT margins improved by 140 bps to 1.8% due to savings in commodity costs.
Tata Motors remains optimistic on demand despite external challenges and anticipates a moderate inflationary environment. Talking about the result PB Balaji, Group Chief Financial Officer, Tata Motors said, “It is pleasing to see all the businesses deliver on their well-differentiated plans this quarter. With a strong product pipeline, a seasonally stronger H2, and continued focus on cash accretive growth, we are confident of sustaining this momentum.”
