Tata Motors’ Q3 profit drops 22 pc, EV sales up 19 pc

Mumbai: Tata Motors on Wednesday reported a 22 per cent decline in its net profit for the third quarter (Q3) of FY25 at Rs 5,451 crore, down from Rs 7,025 crore in the same period last fiscal.

The drop in earnings was primarily due to higher discounts offered to boost sales and weaker margins, despite a slight improvement in overall revenue.

Revenue from operations rose by 2.7 per cent year-on-year to Rs 1,13,575 crore, supported by a modest increase in sales, according to its filing.

However, the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) margins declined by 60 basis points to 13.7 per cent.

Earnings before interest and tax (EBIT) stood at Rs 10,000 crore which is a slight improvement of 60 basis points compared to the previous year.

Automotive free cash flow stood at Rs 4,700 crore, supported by improved sales, while finance costs shrank by Rs 760 crore to Rs 1,725 crore.

Jaguar Land Rover (JLR), Tata Motors’ luxury vehicle subsidiary, reported record quarterly revenue of 7.5 billion pounds up by 1.5 per cent increase from last year.

The segment’s EBIT margin stood at 9 per cent, the highest in a decade, but its EBITDA margin declined by 200 basis points to 14.2 per cent.

Profit before tax (PBT), excluding exceptional items, stood at £523 million, lower than the 627 million pounds recorded a year ago.

In the commercial vehicle (CV) segment, revenue dropped by 8.4 per cent year-on-year to Rs 18,431 crore due to weaker sales and an unfavourable product mix.

However, EBITDA margins improved to 12.4 per cent due to a support by material cost savings and benefits from the government’s production-linked incentive (PLI) scheme.

The passenger vehicle (PV) segment saw a 4.3 per cent decline in revenue to Rs 12,354 crore.

Despite lower revenue, the EBITDA margin improved by 120 basis points to 7.8 per cent, driven by cost-cutting measures and PLI incentives.

Tata Motors’ electric vehicle (EV) sales in the personal segment increased by 19 per cent year-on-year, but fleet sales were impacted due to the expiry of FAME II subsidies.

Tata Motors’ stock closed 3.3 per cent higher at Rs 752.5 apiece.

–IANS