Tata Motors Ltd. (TML) announced its results for quarter ending June 30, 2024.
“Thanks to the hard work and commitment of our people, JLR has delivered an outstanding set of results in the first quarter, with record revenues and an increase in year-on-year quarterly profits of nearly 60 per cent. We are making great progress delivering our Reimagine strategy. Our Jaguar TCS Racing Formula E Team, pioneers in electric technology innovation, are winners of this year’s ABB FIA Formula E Team and Manufacturer’s World Championships. We are bringing the lessons learned from this success on the racetrack to our luxury electric vehicles and later this year we will unveil our first next generation luxury electric vehicle, Range Rover Electric, which has more than 41,000 customers on its waiting list.” Adrian Mardell, JLR Chief Executive Officer
| Consolidated (₹ Cr Ind AS) | Jaguar Land Rover (£m, IFRS) | Tata Commercial Vehicles (₹Cr, Ind AS) | Tata Passenger Vehicles (₹Cr, Ind AS) | ||||||
|---|---|---|---|---|---|---|---|---|---|
| FY25 | Vs. PY | FY25 | Vs. PY | FY25 | Vs. PY | FY25 | Vs. PY | ||
| Q1 FY25 | Revenue | 108,048 | 5.7% | 7,273 | 5.4% | 17,849 | 5.1% | 11,847 | (7.7)% |
| EBITDA (%) | 14.4 | – | 15.8 | (50) bps | 11.6 | 220 bps | 5.8 | 50 bps | |
| EBIT (%) | 8.4 | 30 bps | 8.9 | 30 bps | 8.9 | 240 bps | 0.3 | (70) bps | |
| PBT (bei) | 8,828 | ₹3,287crs | 693 | £258m | 1,535 | ₹598 crs | 173 | ₹(13) crs | |
Tata Motors Consolidated:
TML delivered a strong performance in Q1 FY25 with revenues at ₹108.0K Cr (up 5.7%), EBIT of ₹9.1K Cr (+ ₹0.9K Cr), EBIT margin of 8.4% (+30bps). JLR revenues grew by 5.4% to £7.3b with EBIT margins of 8.9% (+30 bps) driven by favourable volume, mix and material cost improvements. CV revenues grew by 5.1% to ₹17.8K Cr and EBIT margins improved to 8.9% (+240 bps) benefiting from better realizations and material cost savings. PV revenues declined by 7.7%, reflecting the challenging market conditions but EBITDA at 5.8% was up +50 bps driven by material cost reductions. Overall PBT(bei) improved by ₹3.3K Cr to ₹8.8K Cr on lower interest outflow, favourable currency and commodity movements. Net Profit was ₹5.7K Cr (+₹ 2.4K cr yoy).
Corporate actions:
The Board has approved the Scheme of Demerger of Tata Motors into two separate listed companies and is expected to conclude in the next 12 to 15 months. The merger of Tata Motors Finance with Tata Capital is also underway and expected to conclude over the course of next 9 to 12 months. We also expect the process of cancellation of DVR and issuance of ORD shares to be completed in about 2 months. These transactions are subject to necessary approvals
Looking Ahead:
Global demand is likely to remain muted and we expect gradual improvement in domestic demand during the rest of the year on account of continued investments in infrastructure, healthy monsoons, favourable macros and festive demand. Commodities are likely to remain range bound.
PB Balaji, Group Chief Financial Officer, 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.”
JAGUAR LAND ROVER (JLR)
Highlights
- Q1 FY25 Revenue at £7.3 billion (+5.4% yoy), EBITDA 15.8% (-50 bps yoy), EBIT 8.9% (+30 bps yoy), PBT (bei) £693 million (+59% yoy). JLR’s highest Q1 revenue on record.
- Free cashflow for the quarter was £230 million.
- Net debt was at £1.0 billion, with gross debt of £4.8 billion.
- Total liquidity was £5.3 billion, including the £1.5 billion undrawn revolving credit facility maturing 1 April 2026.
Reimagine Transformation continues
Modern Luxury
- New RR Electric continues to generate strong global interest with c.41,000 sign ups to the waiting list.
- New Defender OCTA – the most powerful Defender ever made – initially revealed to a select group of prospective clients, at one of seven exclusive experiential events, prior to its public debut at Goodwood Festival of Speed, UK in July.
- Development of new Jaguar progressing well with camouflaged prototypes now in road testing.
Enterprise
- JLR increases investment from £15 billion to £18 billion over five years to support delivery of Reimagine strategy.
- JLR and Chery sign agreement for JLR to license the Freelander brand to CJLR joint venture for creation of portfolio of electric vehicles in China, based on Chery’s EV architecture.
- JLR has trained 20,000 employees in electrification and digital skills to date; 95% of retail partner technicians now EV trained in readiness for electric vehicle launches.
Sustainability
- Jaguar TCS Racing made history by becoming the Teams’ and Manufacturers’ World Champions of the 2024 ABB FIA Formula E World Championship, supporting EV technology and innovation for JLR.
- JLR is partnering with Pirelli to bring to market FSC‑certified natural rubber and rayon tyres, for use across JLR’s luxury vehicles at scale, debuting on the new Range Rover Electric
Financials
The positive momentum in JLR’s financial performance continued in Q1 FY25, driven by higher wholesale volumes, investment in demand generation and a favourable pricing environment. Revenue for Q1 FY25 was £7.3 billion, the best Q1 revenue on record, up 5% versus Q1 FY24. PBT (bei) in Q1 FY25 was £693 million, up from £435 million a year ago. EBIT margin was 8.9%, up 30 bps yoy. The higher profitability year-on-year reflects favourable volume, mix and material cost improvements, offset partially by increased marketing spend compared to a year ago.
