Tata Motors reported an 11% decline in its Q2 FY25 profit, with a net profit of ₹3,343 crore, down from ₹3,764 crore in the same period last year. Revenue also fell by 3.5%, totaling ₹1.01 lakh crore, compared to ₹1.05 lakh crore in Q2 FY24, primarily due to lower sales volumes.
Key financial highlights include:
- Profit before tax (PBT) decreased to ₹5,767 crore from ₹6,035 crore in Q2 FY24.
- Earnings per share (EPS) slipped to ₹9.71 from ₹9.80.
- EBITDA fell by 14.2% to ₹11,736 crore year-on-year.
Tata Motors highlighted challenges in its domestic commercial vehicle segment, where revenue declined by 13.9% to ₹17,288 crore. This was due to slower infrastructure activity, reduced mining operations, and lower fleet utilization amid heavy rains. The company reported a 19.6% drop in wholesale commercial vehicle volumes year-on-year, totaling 79,800 units.
Jaguar Land Rover (JLR), Tata Motors’ luxury vehicle division, also faced difficulties, with revenue dropping by 5.6% to £6.5 billion. JLR’s EBIT margin slipped by 220 basis points to 5.1%, due to temporary supply constraints, including an aluminum shortage and a hold on 6,029 vehicles for additional quality checks.
The company remains cautious about near-term domestic demand, though it expects the festive season and significant investments in infrastructure to provide some support.
Following the earnings report, Tata Motors’ stock fell by 1.72%, closing at ₹805.70 on the BSE.
Disclaimer:The information provided here is for informational purposes only and does not constitute financial advice. Please conduct your own research or consult a professional before making any investment decisions.
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