Tata Motors logs highest-ever PAT at ₹31,807 cr in FY24; revenue up 26.6%

Tata Motors has clocked “highest-ever” consolidated net profit at ₹31,807 crore in the financial year ended March 31, 2024, registering a growth of 9.2% as compared to ₹29,117 crore in the previous fiscal. The profitability was driven by higher margins reported by all three businesses - Jaguar Land Rover (JLR), Commercial Vehicles, and Passenger Vehicles – on the back of better realisations, mix and cost saving actions.

For FY24, the auto major posted record revenues of ₹4.38 lakh crore, a growth of 26.6% over ₹3.46 lakh crore reported in the previous fiscal.

On the operating front, EBITDA hit an all-time high of ₹62,800 crore, while margin improved by 360 basis points to 14.3% during the year under review.

“It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows,” says PB Balaji, Group Chief Financial Officer, Tata Motors.

For the fourth quarter ended March FY24, Tata Group flagship posted revenue at ₹1.2 lakh crore, up 13.3% YoY, while profit grew 12% YoY to ₹17,529 crore. The EBIDTA was up 26.6% at ₹17,900 crore, while margin rose by 160 bps to 14.9%.

As per the company, net automotive debt reduced further to ₹16,000 crore. The India business is now debt free, and we are on track to become net automotive debt free on a consolidated basis in FY25,” says Tata Motors’ CFO.

For FY24, finance costs reduced by ₹239 crore to ₹9,986 crore, due to reduction in gross debt during the period. While free cash flow (automotive) for the year, was highest-ever at ₹26,900 crore as compared to ₹7,800 crore in FY23, owing to improvement in cash profits and favourable working capital, the company says.

Going ahead, the auto major remains “cautiously optimistic” on domestic demand over the full year and expects first half to be relatively weaker. “The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. Despite this, we are confident of delivering a strong performance in FY25,” it says in the earnings report.

Segment wise, Tata Motors’ British arm JLR reported revenue at 28,995 pounds in FY24, up 27.1%, while Tata Commercial Vehicles closed the fiscal with a topline of ₹78,790 crore, up 11.3 %. The passenger vehicle arm reported a revenue of ₹52,353 crore, up 9.4%.

Recently, Tata Motors announced that it will split the commercial vehicle (CV) and passenger vehicle (PV) businesses in two separate listed entities. The company plans to list commercial vehicles business and its related investments as one entity and the passenger vehicles businesses including electric vehicles (EV), JLR, and its related investments as another entity.

The board of Tata Motors also recommended a final dividend ₹6 per ordinary share of ₹2 each (₹3 normal dividend and ₹3 special dividend) and ₹6.20 per ‘A’ ordinary share of ₹2 each (₹3.10 normal dividend and ₹3.1 special dividend) for the financial year ended March 31, 2024. The dividend, if declared at the AGM on June 24, shall be paid to the eligible shareholders on or before June 28, 2024.

Ahead of Q4 numbers, shares of Tata Motors ended 1.62% higher at ₹1,046.85 on the BSE, with a market capitalisation of ₹3.48 lakh crore.