New Delhi: Auto major Tata Motors on Thursday reported a consolidated profit after tax (PAT) at INR 3,783 crore during the July to September 2023 quarter. The company reported a net loss of INR 1,004 crore during the corresponding period of last year.
The automaker’s total revenue from operations stood at INR 1,05,128 crore in Q2 FY24, as against INR 79,611 crore in Q2 FY23.
“We remain optimistic on demand despite external challenges and anticipate a moderate inflationary environment. We aim to deliver a stronger performance in H2, due to a healthy order book at JLR, strong demand for heavy trucks in CV and exciting new generation products in PV. Our financial performance is expected to improve further owing to a richer mix, continued low-break-even in JLR, execution of demand-pull strategy in CV and improving profitability in PV/EV,” the company said in a statement.
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.”
Adrian Mardell, JLR Chief Executive Officer, said, “We have delivered our best-ever cash flow in the first half of this financial year and delivered another profitable quarter due to the strength of our financial performance. These results demonstrate the huge desirability of our modern luxury product portfolio and the skill of our hard-working teams who have increased production to ensure we can satisfy the substantial demand for our cars more quickly.”
Girish Wagh, Executive Director Tata Motors Ltd said, “The Indian commercial vehicles sector showed steady growth in Q2 FY24 aligned to the rise in economic activity. Our domestic sales grew 6% with more customers experiencing the benefits of lower ownership costs, smart value adds and richer features of our upgraded BS-VI Phase-II range of vehicles.”
In M&HCV segment, Tata Motors delivered 24% growth YoY aided by tailwinds from the government’s sustained thrust on infrastructure development, robust demand for replacements, growth in core sectors, and continuing growth in the e-commerce sector. Concerted actions are underway to step up our competitive growth in the SCV segment. Going forward, with improvement in consumption, onset of the festive season and range bound inflation, we expect these tailwinds to continue while closely monitoring any emerging headwinds in rural demand due to the below average rainfall.”
Shailesh Chandra, Managing Director TMPV and TPEM, said, “It was a transition quarter for us as we proactively reduced our supplies of outgoing models to enable a smooth transition to their next gen avatars. This coupled with the fact that Q2 FY23 was our highest ever sales, resulted in us reporting a marginal decline in revenues by 3.0% this quarter. The EV business posted strong sales growth of 55% during the quarter. During Q2 FY24, we successfully extended our innovative twin-cylinder CNG offering to Tiago, Tigor and Punch and launched the new versions of Nexon and Nexon.ev to an overwhelming market response. Recently (in Q3 FY24), we have launched the new versions of Safari and Harrier which has been received excellent response too. With deliveries commencing of our exciting new generation products, we expect stepped up volumes and profitable growth in the second half of the year.”
Free cash flow (automotive) for Q2 FY24, was positive at INR 3.9K crore, driven by strong improvement in cash profits. Net automotive debt reduced to INR 38.7K crore.
