Tata Motors Q1 Net Profit Jumps 74 Per Cent to Rs 5,566 crore

The Mumbai-based automaker said its April-June revenue from operations rose 5.7 per cent to Rs 1,07,316 crore, from Rs 1,01,528 crore a year ago.

Tata Motors’ consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) increased 19 per cent on-year to Rs 15,785 crore, while operating margin expanded to 14.6 per cent from 12.9 per cent in the year-ago period.

JLR revenue grew by 5.4 per cent during April-June to GBP 7.3 billion with EBIT margins of 8.9 per cent, up 30 basis points driven by favourable volume, mix and material cost improvements.

In the domestic market, commercial vehicle revenues grew 5.1 per cent on-year to Rs 17,800 crore, while EBIT margins improved 240 basis points to 8.9 percent. The company said the margin benefitted from better realizations and material cost savings.

Its passenger vehicle revenues fell 7.7 per cent, reflecting "challenging market conditions", but EBITDA at 5.8 percent expanded 50 basis points, driven by material cost reductions.

Tata Motors said that the proposed demerger of the company into two separate listed entities is expected to conclude in 12 to 15 months.

PB Balaji, Group Chief Financial Officer at Tata Motors said the first quarter has carried forward the momentum of last year with all businesses continuing to deliver on their distinctive strategies.

“We are confident of sustaining the performance in the coming quarters and delivering a strong year,” he added.

According to the company, global demand is likely to remain muted and gradual improvement is expected in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favorable macros and festive demand. Commodities are likely to remain range-bound.