Tata Motors Ltd Share Price – NSE  / BSE

Automobile, Mid Cap

Profit before tax (PBT) fell 4.44% YoY to Rs 5,767 crore during the quarter.

EBITDA stood at Rs 11,567 crore in Q2 FY25, registering de-growth of 19.81% as compared with Rs 11,567 crore in Q2 FY24. EBITDA margin reduced to 11.4% in Q2 FY25 as compared with Rs 13.7% in Q2 FY24.

In its outlook, the company remains cautious on near-term domestic demand. However, the festive season and substantial investments in infrastructure should help bolster it. JLR wholesales are expected to improve sharply, as supply challenges ease. Overall, it expects an all-round improvement in performance in H2 FY25 and the business to become net debt free by this year.

PB Balaji, group chief financial officer, Tata Motors, said, “Growth in the quarter was impacted due to significant external challenges as highlighted earlier. Overall, the business fundamentals remain strong, and it remain focused on agenda of driving growth, competitiveness and free cash flows. As the supply challenges ease and demand picks up, we are confident of steady improvement in our performance and delivering a strong H2.”

JLR reported a net profit of 283 million pounds in Q2 FY25, up 4.04% as compared with 272 million pounds in Q2 FY24. The company’s revenue declined 5.57% to 6,475 million pound in Q2 FY25 as compared with 6857 million pound.

JLR performance was impacted by temporary supply constraints which resulted in EBIT margins of 5.1% (down 220bps).

On outlook front, the company said that both production and wholesale volumes are expected to pick up strongly in the second half as the aluminum supply situation normalizes, and it will continue its diligent management of costs. It holds full year guidance for revenue of £30 billion, EBIT margin ≥8.5% EBIT and achieving a positive net cash position.

Adrian Mardell, JLR, chief executive officer, said, “JLR has delivered a resilient performance in Q2, resulting in a 25 per cent increase in first half profits year-on-year. Our teams responded brilliantly to the aluminum supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients. We continue to make good progress delivering our Reimagine strategy. We have invested £250m so far to prepare our Halewood UK plant for electric vehicle production and with strong global demand for our products, we are well positioned to deliver on our commitments again this financial year.”

Tata Commercial Vehicles, recorded profit before tax of Rs 1314 crore in Q2 FY25, down 13.89% as compared with Rs 1526 crore posted in same quarter last year. Revenue from operations declined 13.93% YoY to Rs 17288 crore in Q2 FY25.

Looking ahead, the company anticipate demand to pick up gradually in Q3, led by ILMCV and Buses, followed by M&HCV and SCVPU segment. Commodities are expected to continue to remain range bound. Overall it expects a stronger H2 even though it remain watchful on the near-term domestic demand.

Girish Wagh, executive director, Tata Motors, said, “Q2 FY25 moderated the positive momentum seen by the commercial vehicles industry at the start of the fiscal, due to slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilization due to heavy rains. Tata Motors Commercial Vehicles domestic sales at 79.8K units were 19.6% lower than Q2 FY24 sales. Our demand-pull strategy and vigilance on costs had the business deliver EBITDA margins of 11.2% in H1 FY25. Going forward, with the rains easing, increased infrastructure spending, and the arrival of the festive season boosting consumption, we anticipate demand to pick up.”

Revenue from Tata Passenger Vehicles declined 3.89% to Rs 11,700 crore during the quarter. Profit before tax (PBT) fell 22.64% YoY to Rs 229 crore in Q2 FY25..

PV volumes were at 130.5K units (-6.1% YoY) driven by slow consumer demand and seasonal factors.

On outlook front, TaMo said, “It expects the industry wholesales to be lower to enable channel inventory reduction ahead of new calendar year. It will drive significant growth in retail on the back of new model launches & a comprehensive marketing campaign, while keeping channel inventory in check. It will continue to strengthen its multi-powertrain strategy to leverage industry powertrain shifts and enhance its profitability through scale benefits, improving mix and intensified cost reduction actions amidst an intense competitive environment.”

Shailesh Chandra, managing director, TMPV and TPEM, said, “The Passenger Vehicle industry in Q2 FY25 witnessed approximately 5% decline in registrations, resulting in continued build-up of channel inventory. Sales of EVs were additionally impacted by lapse of certain subsidies. We moderated our offtakes in Q2 to proactively keep our channel inventory under control. Q3 has started off with a resurgence in industry demand on the back of a robust festive season. Tata Motors recorded its highest ever monthly registrations of around 68.5k during October, which helped in bringing down the inventory to normal levels. Our multi-powertrain suite of Curvv, Nexon iCNG and Nexon.ev 45 has garnered strong consumer interest as we continue to ramp up deliveries in Q3.”

Finance costs reduced by Rs 618 crore to Rs 2,034 crore in Q2FY25, due to reduction in gross debt during the period.

In Q2 FY25, net profit from joint ventures and associates amounted to Rs 82 crore compared to Rs 49 crore in Q2 FY24. Other income (excluding grants) was Rs 744 crore in Q2 FY25 versus Rs 807 crore in Q2 FY24.

Free cash flow (automotive) for the quarter, was negative at Rs 2.9K crore driven by lower volumes on account of supply constraints. Net automotive debt was at Rs 22.0K crore.

Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses

The counter declined 1.72% to settle at Rs 805.70 on the BSE.

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Net profit of Tata Motors declined 11.18% to Rs 3343.00 crore in the quarter ended September 2024 as against Rs 3764.00 crore during the previous quarter ended September 2023. Sales declined 3.74% to Rs 100534.00 crore in the quarter ended September 2024 as against Rs 104444.00 crore during the previous quarter ended September 2023.

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In the domestic market, the company sold 80,839 vehicles in October 2024. Domestic sales for the same period last year were 80,825 vehicles.

Total commercial vehicle sales for October 2024 stood at 34,259 units, which is marginally lower as compared to 34,317 units sold in October 2023.

The company sold total 48,423 passenger vehicle units in October 2024, which is flat on a YoY basis.

Tata Motors, part of the Tata group, is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.

The company’s consolidated net profit jumped 73.77% to Rs 5,566 crore on 5.68% rise in total revenue from operations to Rs 1,08,048 crore in Q1 FY25 over Q1 FY24.

Shares of Tata Motors rose 1.04% to Rs 842.80 on the BSE.

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The key equity benchmarks traded with substantial gains on Muhrat Trading Day. The Nifty traded above the 24,350 mark. At 18:10 IST, the barometer index, the S&P BSE Sensex, advanced 488.95 points or 0.62% to 79,878.01. The Nifty 50 index added 147.35 points or 0.61% to 24,352.70.

In the broader market, the S&P BSE Mid-Cap index rose 0.89% and the S&P BSE Small-Cap index jumped 1.30%.

The market breadth was strong. On the BSE, 2,853 shares rose and 331 shares fell. A total of 99 shares were unchanged.

Stocks in Spotlight:

Tata Motors rose 1.26% after the company said that it had registered total sales of 82,682 units in October 2024, which is lower by 0.33% as compared with 82,954 units sold in October 2023.

Maruti Suzuki India rose 0.63%. The company has reported 3.6% rise in total sales to 206,434 units in October 2024 from 199,217 units in October 2023.

TVS Motor Company added 0.97%. The company recorded monthly sales of 489,015 units in October 2024 with a growth of 13% as against 434,714 units in the month of October 2023.

Global Market:

The Dow Jones index futures were up 115 points, indicating a negative opening in the US stocks today.

European stock markets traded higher on Friday, with investors remaining cautious ahead of crucial US economic data and the upcoming presidential election.

In Asia, most stock markets declined, led by a 2.8% drop in Japan's Nikkei. The Bank of Japan maintained its benchmark interest rate at 0.25%, as expected. The Japanese yen weakened against the US dollar.

U.S. stocks closed lower on Thursday, with the Dow and S&P 500 cementing their first monthly loss since April as tech stocks sold off sharply and bond yields remained elevated. The S&P 500 climbed roughly 1.89%, while the Dow rose more than 0.9%, with both indexes trading at record highs. The tech-heavy Nasdaq Composite led the gains, up roughly 2.76%.

Microsoft and Meta Platforms highlighted growing artificial intelligence costs that could hit their earnings, curbing enthusiasm for megacaps that have fueled the market rally this year. Shares of Facebook-owner Meta Platforms slipped 4.1% and Microsoft fell 6%, despite both companies beating earnings estimates in results reported after the bell on Wednesday.

Investors are watching Friday for the closely followed employment data due in the morning.

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