Tata Motors Q3 result: Automaker back in black with net profit of Rs 2,958 crore

Tata Motors on Wednesday reported a consolidated net profit of Rs 2,958 crore in the third quarter of the current fiscal on account of robust sales. The company has reported a net loss of Rs 1,516 crore in the same quarter last fiscal. On sequential basis, the company had reported a net loss of Rs 945 crore.

The Tata Group company's total income increased to Rs 88,489 crore in the period under review from Rs 72,229 crore in the year-ago period, the Mumbai headquartered company said in an exchange filing post-market.

The consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin grew by 50 basis points to 9.5 per cent YoY, as per the company’s exchange filing.

Also Read: Tata Motors, Maruti Suzuki, Bajaj Auto shares give Nifty Auto a firm lift – what’s powering the rally

Tata Motors said, “JLR (Jaguar Land Rover) delivered on its plans and achieved positive free cash flow and profitability in the quarter as supplies improved. Revenues were £6.0 billion, up 28 per cent YoY and up 15 per cent sequentially reflecting better supplies, strong model mix, and pricing.”

The higher profitability reflects increased wholesale volumes for JLR with favourable mix, pricing, and foreign exchange offset partially by higher inflation and supplier claims largely related to constrained volumes, the auto major also said in its earnings statement.

With respect to commercial vehicle business, Tata Motors mentioned, “Tata CV revenues in Q3 were up 22.5 per cent to Rs 16,9000 crore and EBITDA margins were up 8.4 per cent, led by better mix, higher realisations, cost savings and softened commodity prices.”

Also Read: Tata Motors, Bajaj Auto, Dr Reddy’s Laboratories, and Cipla are in focus ahead of Q3 results on Wednesday

Tata Motors Outlook: “We remain cautiously optimistic on the demand situation despite global. We will remain vigilant on demand, and our continued focus on profitable growth, improving semiconductor supplies and stable commodity prices will aid revenue growth, margin improvement and positive cash delivery in Q4FY23.”

Shares of Tata Motors finished at Rs 418 apiece on NSE during today's trading session, down by nearly 1 per cent amid broad-based seeling in the broader market.