Tata Motors Passenger Vehicles (500570) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 revenue rose 5.7% year-over-year to ₹108,048 crore, with EBITDA margin at 14.4% and EBIT margin at 8.4%. Net profit increased by ₹2,391 crore to ₹5,692 crore.

• Profit before tax (before exceptional items) increased to ₹8,828 crore, up from ₹5,541 crore year-over-year.

• Free cash flow for the automotive business was ₹1,200 crore, impacted by adverse working capital due to seasonality.

• Net automotive debt stood at ₹18,600 crore, slightly higher sequentially due to seasonality and dividend payouts.

• Major corporate actions include the planned demerger of CV and PV businesses, merger of Tata Motors Finance with Tata Capital, and DVR cancellation, all progressing on schedule.

Financial highlights

• JLR posted record Q1 revenue of £7.3 billion (+5.4% YoY), EBIT margin at 8.9%, and PBT (before exceptionals) of £693 million (+59% YoY).

• Tata Commercial Vehicles revenue reached ₹17,849 crore (+5.1% YoY), with EBITDA margin at 11.6% and EBIT margin at 8.9%.

• Tata Passenger Vehicles revenue was ₹11,847 crore (down 7.7% YoY), with EBITDA margin at 5.8% and EBIT margin at 0.3%.

• JLR achieved its 7th consecutive quarter of positive free cash flow (£230 million), with strong liquidity of £5.3 billion and net debt at £1 billion.

• Tata Motors Finance AUM at ₹42,154 crore, GNPA improved to 5.8% from 8.1% YoY.

Outlook and guidance

• JLR maintains FY25 guidance: EBIT margin ≥8.5%, revenue >£30 billion, net cash positive, and investment of £3.5 billion, despite anticipated production constraints in Q2 and Q3 due to plant shutdowns and supplier disruptions.

• Gradual improvement in domestic demand expected, supported by infrastructure investments, healthy monsoons, and festive demand.

• Global demand likely to remain muted; commodity prices expected to be range-bound.

• Commercial vehicle demand expected to benefit from policy continuity and infrastructure push.

• Passenger vehicle demand anticipated to pick up during the festive period, with new launches planned.