PUNE: Tata Motors, India’s biggest automaker’s consolidated net profit for the July-September quarter fell 11 per cent on-year to Rs 3,343 crore, driven by weak performance at its Jaguar Land Rover (JLR) unit and in its commercial vehicles segment.
Its consolidated revenue also dropped 3.5 per cent to Rs 1.01 lakh crore, largely impacted by lower sales volumes.
Its EBITDA fell by 230 basis points to 11.4 per cent.
"We remain cautious on near-term domestic demand," Tata Motors said in a statement. "However, the festive season and substantial investments in infrastructure should help bolster it," it noted.
Jaguar Land Rover’s revenue declined 5.6 per cent to £6.5 billion. Tata Motors said that "temporary supply constraints" also weighed on profitability.
JLR’s EBIT margin fell 220 basis points to 5.1 per cent. The profitability at JLR was "impacted on account of temporary aluminum supply constraint and a hold placed on 6,029 vehicles for additional quality control checks," said the statement.
Meanwhile, Tata Motors' domestic commercial vehicles revenue dropped by 13.9 per cent to Rs 17,288 crore due to sluggish infrastructure activity, a reduction in mining, and lower fleet utilization amid heavy rains.
"In Q2 FY25, domestic wholesale CV volumes were 79,800 units, lower 19.6 percent on-year, impacted by slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleetilization due to heavy rains," Tata Motors said.
