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Consolidated EBITDA during the third quarter came in at Rs 15,500 crore, which is a strong increase over the preceding September quarter as supply-related challenges eased.
On a sequential basis, earnings improved substantially. The profit jumped 63% from Rs 3,343 crore posted in the second quarter.
“The fundamentals of the business are strong and therefore despite external challenges we are confident of delivering another strong performance this year,” said PB Balaji, Group CFO, Tata Motors.
Segment-wise, CV revenues were down 8.4% YoY to Rs 18,400 crore. However, EBITDA margins improved 130 bps YoY to 12.4%, led by savings in commodity costs and PLI incentives.
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PV volumes for the quarter were steady at 1,40,000 units, while revenues in Q3FY25 were down 4.3% YoY at Rs 12,400 crore. EBITDA margins in Q3FY25 were 7.8% up 120 bps on a YoY basis, with cost reduction actions and incentives more than offsetting adverse realizations.
In the EV segment, the company registered 19% growth in the domestic personal segment, although fleet volumes declined YoY due to the expiry of the FAME II subsidy.
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JLR
JLR delivered a healthy performance in Q3FY25 with record Q3 revenue and the highest EBIT margin in a decade, and a ninth successive profitable quarter.
Revenue for the quarter was £7.5 billion, up 1.5% YoY, while YTD revenue at £21.2 billion was flat YoY.
Compared to Q2, revenue was up 16%, driven by higher wholesales following supply disruptions in the preceding quarter. PBT was £523 million, down from £627 million a year ago.
“The increase in profitability year-on-year reflects higher volumes, improved mix and a reduction in depreciation and amortisation (D&A) driven by Castle Bromwich production cessation and ICE end of life extensions,” Tata Motors said in a release.
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Brokerage view
Following Q3 results, Nuvama maintained a ‘Reduce’ rating on Tata Motors, cutting the target price to Rs 720 from Rs 750. The brokerage noted that Q3FY25 EBITDA fell short of estimates due to lower realizations and margin misses in JLR and the India CV division. Management also revised its FY25E JLR revenue estimate downward by 3%.
Nuvama projects muted revenue and EBITDA CAGR of 2% each over FY25-27E. It expects JLR volumes to contract at a -4% CAGR due to order book exhaustion, the discontinuation of Jaguar models, and subdued demand. The India CV division is also expected to see sluggish growth, with just 1% CAGR, affected by moderate road construction spending and a high base.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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