Last Updated on February 5, 2024 by ethinos
On February 2, 2024, Tata Motors Limited (BSE, NSE: TATAMOTORS) announced its Q3 2023-24 results, clocking consolidated Q3 FY24 Revenue at ₹110.6K Cr, 25% up, EBITDA at ₹15.8K Cr, up by more than 60.6%, PBT standing at ₹7.6K Cr, plus 4.4K Cr up, and Automotive Free Cash Flows pegged at ₹6.4K Cr, above 1.1K Cr up from the last fiscal year same quarter.
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Tata Motors Q3 Results Result Takeaways
Clocking a Q3 FY24 result of resilience in every sphere of the automotive king’s business, Tata Motors Limited has delivered, as expected a successful result. Here are the main highlights:
- The Company has managed to deliver a robust performance in Q3 FY24 with a Revenue of ₹110.6K Cr, a rise of 25% from the previous fiscal year’s same period.
- The EBITDA of the Company stood at ₹15.8K Cr, an increase of 60.6%, with an EBIT of ₹9.2K Cr, up by more than ₹5.3K Cr, showing all segment automotive verticals moving ahead with their profitable growth trajectory.
- The Profit Before Tax, or PBT, improved and reached ₹4.4K Cr to ₹7.6K Cr and the Net Profit was at ₹7.1K Cr. For YTD FY24, the Company reported resilient PBT of ₹19.0K Cr, improved by ₹22.6K Cr relative to the previous year.
- The Company’s Net Automotive debt went down further to ₹29.2K Cr.
- The Jaguar Land Rover (JLR) Revenue improved by 22% to £7.4b. A boost in wholesales and decreased material costs resulted in EBIT margins of 8.8%, up by 510bps.
- Commercial Vehicle Revenue was improved by 19.2% and the EBIT was improved by 8.6%, up by 270bps, due to higher realisations and a richer mix.
- The Passenger Vehicle Revenues grew by 10.6% with an improvement in EBIT margins at 2.1%, improved by 60 bps, driven by savings in commodity costs.
Additional Read: Q3 Results Dashboard
Record Revenue for Jaguar Land Rover
The vertical of the business dealing with Jaguar Land Rover production witnessed growth in Q3. Here are key aspects:
- The segment of JLR had a record Q3 FY24 and YTD FY24 revenue of £7.4 billion and £21.1 billion, respectively.
- The EBIT Margin in Q3 FY24 was 8.8%, which is more than double that of Q3 FY23.
- The Profit Before Tax stood at £627 million in Q3 FY24, marking JLR’s highest quarterly profit since Q4 FY17.
- The Free Cash Flow was at £626 million in Q3 FY24 and £1.4 billion for YTD FY24.
- The total liquidity stood at £5.8 billion.
- The Range Rover Electric Vehicle prospect is generating solid interest with over 15,000 sign-ups on the waiting list since this opened for offer.
- Sales of the highest specification Range Rover SV, with an average price of £202,000, are growing on a YoY basis. 3,637 YTD sales have already surpassed 1,909 Range Rover SVs sold in FY23.
- Defender 110 D300 X-Dynamic S has won the “What Car? Car of the Year ‘Best seven-seater’” award.
- Range Rover Electric prototypes are being tested on the road while electric medium-size SUV prototypes and new Jaguar prototypes are in development.
- The transformation of JLR manufacturing plants for EV production is continuing at the expected pace.
Tata Motor Vehicles – On a Winning Streak
Tata Motors witnessed growth in Q3 FY24, concerning its commercial vehicle and passenger vehicle segments. Here are some key highlights of these segments:
- Commercial Vehicles: In Q3 FY24, domestic wholesale Commercial Vehicle volumes stood at 91.9K units, higher by 1.1% YoY, while exports stood at 4.8K units, up by 14% YoY. Revenues witnessed improvements, by 19.2% YoY, to ₹20.1K Cr due to salience towards heavy and medium commercial vehicles and better market operating prices.
- Passenger Vehicles: The volumes of Passenger Vehicles were registered at 138.6K units, up by 5% YoY, aided by healthy supply, new facelifts for SUVs, and a solid demand in the festive season. Revenues increased 10.6% YoY, reaching ₹12.9K Cr and EBIT Margins witnessed an improvement of 60 bps YoY, to 2.1% as a result of commodity cost savings.
Other Q3 Highs
Here are some other aspects of Q3 FY24 results that had the Company riding the “highs” of success:
- Finance Costs – Finance costs went down by ₹191 Cr, to ₹2,485 Cr in Q3 FY24, on account of a reduction in the gross debt.
- Joint Ventures – For Q3 FY24, the Net Profit from joint ventures and associates was ₹193 Cr relative to a profit of ₹103 Cr in Q3 FY23.
- Free Cash Flows – Free Cash Flow (automotive) for Q3 FY24, was at a positive ₹6.4K Cr led by robust improvement in cash profits. The Net Automotive Debt was reduced to ₹29.2K Cr.
What Lies Ahead
The Company retains its positive outlook for all three business verticals, with the estimation that future performance will be boosted due to seasonality in Q4. This will be enhanced further, by the improvement of supplies at JLR as well as new launches. The Company has achieved a Net Debt reduction of ₹9.5K Cr in Q3 FY24, and it is optimistic about its plans to deleverage.
The Management’s Take on Q3 Results
The Group CFO of Tata Motors Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company is satisfied with its current business execution which is progressing well with differentiated strategies to generate robust quarterly results.
- With Q3 FY24, the Company marked the 6th quarter of successive delivery of strong growth.
- The Company shows confidence in ending the year on a healthy footing and sustaining its optimal business performance.
Additional Check: TATA Motors Share Price
Tata Motors Financial Results at a Glance
Here is a glimpse of the Consolidated financial results of Q3 (figures in ₹ Crore except where indicated by %):
| Metrics | Q3 FY 2023-24 | Versus Previous Year |
| Gross Revenue | 110,577 | 25.0% up |
| EBITDA % | 14.3% | 320 bps up |
| Profit Before Tax | 7,582 | 4,379 |
Q3 FY24 Result Summary
TML or Tata Motors Limited is a $42 billion enterprise and the largest automobile company in India. A leading international player in the vehicle manufacturing business, the Company produces utility vehicles, trucks, cars, buses, and defence vehicles. The organisation was Incorporated in 1945, in India. A key part of the legendary Tata Group, a $100 billion conglomerate, founded by Jamsetji Tata in 1868, TML is recognised for its superior quality, innovation, engineering, and vehicle design excellence. Along with robust fundamentals in terms of business and operations, the Company is moving towards sustainability (portfolio emissions are well below CAFÉ norms in Q3), and maintaining the spirit of the Tata Group to give back to society at large.
TML has a global footprint in the automobile sector that is world-class level and it continues to post success with each quarter, rising to the demands of discerning customers. The Company, along with its 76 subsidiaries to provide automotive and engineering solutions, offers an array of brands under its distinctive business. These comprise icons like Jaguar Land Rover in the UK as well as Tata Daewoo in South Korea.
With its business fundamentals strengthening in Q3 FY24, Tata Motors Limited has engaged in prudent sourcing and concerted collection efforts that continue to bolster portfolio quality. In Q3 FY24, Cash profits have been well ahead of Capex, and the Q3 YoY wholesale volume growth has been significant. The Vahan market share continues to expand for the Company as it rolls out CNG cars & EVs with a penetration pegged at 26%. As the Company’s margins continue to improve, and the Order Book for JLR looks promising, the Company is prepared to take on the last quarter of this fiscal with aplomb.
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Source: Tata Motors Limited – Press Release on BSE
