Tata Motors Reports Impressive Q4 Performance with Record Net Profit, Revenue Surge, and Debt-Free India Business

Tata Motors, the renowned auto giant, showcased robust financial performance in its Q4 results for the financial year 2023–24, boasting a staggering net profit surge to ₹17,407 crore. This remarkable achievement, fueled by a tax credit of ₹8,159 crore, marks a significant leap from the ₹5,400 crore net profit reported in Q4FY23. With a revenue of ₹1.20 lakh crore, a notable 14% increase from the previous quarter, Tata Motors demonstrated its resilience and growth trajectory despite prevailing market challenges.

Driving this exceptional performance was Tata Motors’ EBITDA, which soared to ₹17,035 crore, a remarkable 33% rise year-on-year. Although slightly below market expectations, the company’s margin for the quarter rose by 210 basis points to 14.2%, reflecting operational efficiency and strategic initiatives.

According to PB Balaji, Group Chief Financial Officer of Tata Motors, “It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest-ever revenues, profits, and free cash flows. The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25.” This announcement underscores Tata Motors’ commitment to financial health and sustainable growth.

Looking forward, Tata Motors management remains cautiously optimistic about domestic demand, anticipating a relatively weaker first half of the year but expecting resilience in the premium luxury segment. Despite emerging concerns on overall demand, the company expresses confidence in sustaining strong performance in FY25.

In a move to reward its shareholders, Tata Motors announced a dividend of ₹6 per share for FY24, translating to 300% per equity share against a face value of ₹2. This gesture reflects the company’s commitment to delivering value to its stakeholders.

Furthermore, Tata Motors’ premium luxury segment vertical, Jaguar Land Rover (JLR), reported impressive results, with revenue surging to £7,860 million in Q4FY24. Adrian Mardell, CEO of JLR, commented, “We have delivered a record financial performance for the company, generating free cash flow of £2.3 billion, enabling us to reduce net debt to £0.7 billion.” This accomplishment underscores JLR’s global appeal and strategic focus.

In terms of market performance, Tata Motors share price settled at ₹1,047 on the NSE, reflecting a 1.6% increase. Year-to-date, Tata Motors stock price has surged more than 33%, making it the second best performer on the Nifty 50.

Overall, Tata Motors’ stellar Q4 results underscore its resilience, strategic vision, and commitment to sustainable growth, positioning it as a formidable player in the global automotive industry.

If you like this law news, share it with a friend!