Tata Motors Q1 results: Net profit at Rs 3,203 crore, exceeds analysts' estimates

Tata Motors on Tuesday reported a consolidated net profit of Rs 3,202.8 crore for the quarter ended June 2023, beating analysts' estimates, as against a consolidated net loss of Rs 5,006.6 crore for the corresponding period a year ago.

The Tata group auto major's revenue came in at Rs 1,01,528.5 crore for the three-month period, as against Rs 71,227.8 crore for the quarter ended June 2022, according to a regulatory filing. 

According to Zee Business research, the auto maker's quarterly net profit was estimated at Rs 2,000 crore and revenue at Rs 1,01,500 crore. 

Tata Motors' margin — a key measure of profitability — improved to 13.3 per cent for the June quarter from 4.4 per cent a year ago, better than Zee Business analysts' estimate of 11.4 per cent. 

Tata Motors said it remains optimistic about the demand situation despite near-term uncertainties, and expects a moderate inflationary environment to continue in the near term. The company said it expects demand in passenger vehicles to remain steady and in commercial vehicles to improve sequentially going forward.  

"We aim to deliver a strong performance in the rest of the year too, thanks to a healthy order book coupled with low-break-even in JLR, a steady improvement in demand whilst we continue to drive our demand-pull strategy in CV, a set of exciting launches ahead of the festive season in PV and continued aggression in EVs," Tata Motors said.

Revenue from passenger vehicles increased 11.1 per cent to Rs 12,800 crore and that from commercial vehicles grew 4.4 per cent to Rs 17,000 crore, according to a company statement. 

Revenue from Tata Motors subsidiary Jaguar Land Rover (JLR) increased 57 per cent to 6.9 billion pounds, it added.

“FY24 has begun on the right note with all automotive verticals delivering strong performances. The distinct strategy employed by each business is now delivering consistent results and making them structurally stronger," said PB Balaji, Group Chief Financial Officer, Tata Motors.

"We remain confident of sustaining this momentum in the rest of the year and achieve our stated goals," he said. 

Tata Motors shares ended higher by Rs 10.2 or 1.6 per cent at Rs 639.5 apiece on BSE ahead of the earnings announcement. 

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