On 2 November 2023: Tata Motors (BSE, NSE: TATAMOTORS) announced its Q2 2023-24 financial results, delivering continuing positive results in Q2 with key metrics up, including Revenue, EBITDA, PBT, and Automotive Free Cash Flows, across the verticals of all auto segments in its vast portfolio.
Table of Content
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q2 results:
- The Revenue of the auto giant stands at ₹105.1K Cr, a rise of 32.1%.
- EBITDA for the quarter is at ₹14.4K Cr, a rise of 86.4%.
- All verticals of the company have witnessed a trajectory of growth.
- Profit Before Tax (before exceptional items) was at ₹6.1K Cr, an improvement of a huge ₹7.9K Cr over the previous fiscal year’s same quarter.
- Net Profit was at ₹3.8K Cr.
- Net Automotive Debt was reduced to ₹38.7K Cr
Additional Read: Q2 Results Dashboard
Key Highlights – Segment Results
In terms of segments, Tata Motors witnessed positive results across verticals, the key details of which are given below:
- Jaguar Land Rover (JLR) Revenues displayed an improvement of 30.4% over the previous year’s same quarter. Strength in the wholesale market and an improved mix led to EBIT Margins of 7.3% (+630 bps).
- CV Revenues saw an improvement of 22.3% and EBIT also improved and stood at 7.9% (+50bps). This was the result of higher realisations, favourable commodity prices, and a richer mix.
- PV Revenues were marginally decreased at 3.0% affected by the transition to new launches, but EBIT Margins saw an improvement by 140 bps to 1.8% as a result of savings in costs of commodities.
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Management Commentary
The Tata Motors Group CFO, PB Balaji, had some insights on the results and these are shared below:
- The company is pleased to note positive results in all segments in Q2.
- The company will continue on a path of profitability with a robust product pipeline, a seasonally healthier H2, and a sustained focus on cash accretive growth.
The CEO of JLR, Adrian Mardell, had the following reflections on the success of the quarter for JLR:
- The CEO was pleased to confirm another strong quarter in terms of operational and financial progress for JLR.
- In H1 2023-24, JLR delivered its best ever cashflow with a profitable Q2 boosting this performance.
- The Q2 performance is indicative of huge demand in the modern luxury product portfolio of the company and has been led by skilled teamwork meeting the demands of increased productivity to cater to customers’ requirements more rapidly.
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Financial Results
Here are the financial results of Q2 in a nutshell (all figures in ₹ Cr, except where indicated by %), showing key Q2 metrics and changes relative to Q2 FY 22-23:
| Metrics | Q2 FY 2023-24 | Change % |
| Revenue | 105,128 | 32.1% higher |
| EBITDA % | 13.7% | 400 bps up |
| EBIT % | 7.5% | 510 bps up |
| Profit Before Tax | 6,110 | ₹7,883 Cr higher |
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What’s In Store?
Going ahead, the company remains optimistic on the demand front despite challenges with a moderately inflationary atmosphere. The company aims at a healthy delivery in the rest of FY23-24 due to a robust order book at JLR, healthy demand for heavy trucks in the commercial vehicle segment, and much-awaited new-generation products in the passenger vehicle segment. The company’s financial performance is estimated to improve due to a richer mix, the implementation of a demand-pull strategy in CV, continual low break-even in the JLR segment, and the improvement of profitability in the PV and CV categories. Furthermore, the demand in the CV category will be fueled by aggressive economic development.
Also Read: Tata Motors Key Insights
About Tata Motors
Tata Motors is a key company in the USD 128 billion Tata Group. It needs no introduction as it has a prominent domestic and international presence. A top global automobile car manufacturer, the company is famous for its production of utility vehicles, trucks, pick-ups, and buses. Tata Motors offers a wide range of diverse smart, integrated, and e-mobility solutions. At the heart of its brand promise is ‘Connecting Aspirations’ and the company has been a testament to this ever since it began operations. It has the distinction of being India’s market leader in the segment of commercial vehicles and within the top 3 in the market of passenger vehicles.
Tata Motors, in an aggressive effort to drive innovation, has R&D centres all over the world, namely in the UK, the USA, South Korea, and its native India. The company continues to develop pioneering technology to cater to the demands of its new-generation customers and its loyal clients alike. At the moment, the company is focused on getting a competitive edge in the EV (Electrical Vehicle) segment, aiming at sustainable solutions in mobility. It is playing an active role in this market by nurturing its own strategies and liaising with the government.
With key operations in India, the United Kingdom, Thailand, South Korea, Indonesia, and South Africa, Tata Motors’ vehicles have solid markets in the Middle East, Africa, South East Asia, Latin America, and SAARC nations. With mergers and acquisitions, past and future, on its plate, Tata Motors seeks expansion and penetration into new markets with the environment as its prime concern. In respect of this, the company exerts significant influence in the automotive markets around the world.
Source:
https://www.tatamotors.com/wp-content/uploads/2023/11/Tata-Motors-Investor-presentation-Q2-FY24-1.pdf
