Consolidated revenue reached Rs. 113.6K crore and net profit of Rs. 5.6K crore, while JLR achieves record quarterly metrics.
29 Jan 2025 | 3700 Views | By Sarthak Mahajan
Tata Motors Limited reported a sharp fall in its net profit for the December quarter to Rs 5,578 crore from Rs 7,145 crore in the corresponding quarter of last year.
The auto major reported consolidated revenue of ₹113.6K crore in Q3 FY25, up 2.7% year-on-year, while EBITDA stood at ...
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Tata Motors Limited reported a sharp fall in its net profit for the December quarter to Rs 5,578 crore from Rs 7,145 crore in the corresponding quarter of last year.
The auto major reported consolidated revenue of ₹113.6K crore in Q3 FY25, up 2.7% year-on-year, while EBITDA stood at ₹15.5K crore with a margin of 13.7%. The company posted a consolidated net profit of ₹5.6K crore for the quarter. Free cash flow (automotive) remained strong at ₹4.7K crore.
Jaguar Land Rover (JLR), Tata Motors' luxury car unit, delivered a particularly strong performance with record quarterly revenue and its highest EBIT margin in a decade at 9.0%. This marked JLR's ninth successive profitable quarter.
"In Q3, the performance of all businesses improved sequentially. For YTD FY25, our business grew 1.6% over the previous year to ₹323.0K Cr and delivered a robust PBT (bei) of ₹22.3K Cr (+14.5%)," said PB Balaji, Group Chief Financial Officer, Tata Motors.
Standalone Results:
On a standalone basis, Tata Motors reported revenue of ₹17,040 crore for Q3 FY25. The company's commercial vehicle (CV) business saw revenues decline due to lower volumes, but EBITDA margins improved to 12.4% (up 130 bps) primarily reflecting material cost savings and the impact of PLI incentive.
The passenger vehicle (PV) segment revenues were down 4.3%, though EBITDA margin improved by 120 bps to 7.8% due to cost controls and PLI incentive. The company received sanction of Automotive Production Linked Incentives (PLI) in December 2024, recognizing an income of ₹351 crore.
Future Outlook:
Looking ahead, Tata Motors expects underlying domestic demand to improve gradually on account of infrastructure spending and new product launches. While JLR wholesales are expected to improve further in Q4 FY25, the company remains watchful of the overall demand situation, particularly in China.
The company's management expressed confidence in delivering another strong performance this year, citing strong business fundamentals despite external challenges.
Of note, the Board of Directors has approved a scheme to demerge its Commercial Vehicle business into TML Commercial Vehicles Limited and merge Tata Motors Passenger Vehicles Limited with the existing listed company, potentially creating two separate listed entities for the CV and PV businesses. The necessary regulatory approvals are awaited.
EV Performance & Strategy:
Tata Motors maintained its leadership in the electric vehicle segment with a 61% market share in YTD FY25. The company's EV penetration reached 11% of total sales, while its CNG vehicles accounted for 24%. With over 2 lakh Tata EVs on the road, the company has helped eliminate 700,000 tonnes of CO2 emissions.
Commercial Vehicle Highlights:
The CV business demonstrated strength in key segments, with domestic Vahan market share at 37.7%. The segment breakdown shows particularly strong performance in HGV+HMV (49.1% market share) and Passenger vehicles (38.0%). The ACE EV volumes witnessed 26% growth, with new value propositions introduced following FAME2 incentive changes.
Future Product Pipeline:
At the recent Bharat Mobility Expo 2025, Tata Motors showcased an impressive lineup of next-generation vehicles. Notable reveals included the All-New Tata Sierra, Harrier.ev with remote summon capability, and the Avinya X concept. The company also reinforced its multi-powertrain strategy with new flex fuel options.
JLR's Transformation:
JLR continues to make progress on its Reimagine strategy, revealing the Jaguar Type 00 design vision in Miami and preparing for the Range Rover Electric launch. The waiting list for Range Rover Electric has reached 57,000 units, while Range Rover plug-in hybrid sales grew by 163% year-on-year.
Financial Management:
The company made significant progress in debt reduction, with finance costs decreasing by ₹760 Cr to ₹1,725 Cr in Q3 FY25. The net automotive debt stood at ₹19.2K Cr, reflecting the company's focus on strengthening its balance sheet.
Corporate Actions:
The quarter saw important structural changes, including the completion of 'A' Ordinary shares cancellation scheme and the announcement of the CV-PV business separation plan. Additionally, Tata Motors Finance Limited is set to merge with Tata Capital Limited, pending regulatory approvals.
Global Market Presence:
The company maintained its strong international presence through JLR's performance in key markets and strategic partnerships. A notable development was JLR's partnership with Tata Communications for enabling continuous connectivity in remote locations from 2026.