Tata Motors Ltd reported a 74 per cent increase in its consolidated net profit with ₹5,566 crore reported in the June quarter as opposed to ₹3,203 in the same quarter last year.

The company’s profit dropped by 68 per cent compared to the March quarter with ₹17,407 crore. 

The total revenue from operations posted a 5.68 per cent growth, with ₹1,08,048 crore for the June quarter compared with ₹1,02,236 crore reported during the same quarter last year. The total revenue from operations dropped by 10 per cent, with ₹1,19,986 crore reported during the March quarter.

Tata Motors had a cash flow of ₹1,200 crore driven by strong improvement in cash profits, while the net automotive debt was marginally higher at ₹18,600 crore during the quarter.

“The first quarter has carried forward the momentum of last year with all businesses continuing to deliver on their distinctive strategies. We are confident of sustaining the performance in the coming quarters and delivering a strong year,” said PB Balaji, Group Chief Financial Officer, Tata Motors.

The company’s board approved the scheme of demerging Tata Motors into two separate listed companies, which is expected to happen in the next 15 months. Further, the merger of Tata Motors Finance with Tata Capital is also underway and expected to conclude in the next 9 to 12 months. The company stated that it expects the process of cancelling DVR and issuing ORD shares to be completed in 2 months.

“Each shareholder of TML whose name is recorded in the register of members and records of the depository as a shareholder as on the Record Date (as defined in the Scheme) shall be issued and allotted 1 (one) share of TMLCV (having a face value of Rs 2/- each and fully paid up), for every 1 (one) share of TML (having face value of Rs. 2/- each and fully paid up), of the same class of shares outstanding and as held by such shareholder in TML,” the company informed the stock exchanges.

Passenger vehicles

Tata Motors passenger vehicle revenue was at ₹11,800 crore, down by 7.7 per cent year-on-year.

“The Passenger Vehicle industry in Q1 FY25 witnessed retails (registrations) moderating, impacted by the general elections and intense heat waves across the country. Tata Motors’ sales of 138,682 cars and SUVs were slightly lower compared to Q1 FY24, as we proactively readjusted our wholesales in line with retail to keep channel inventory under control. Our multi-powertrain strategy and a strong portfolio of SUVs led to steady sales. While the personal segment retail has grown for EVs, there was a sharp decline witnessed in the fleet segment. Going forward, we expect an improvement in overall sales after the onset of the festive season and the launch of Curvv, India’s first SUV Coupe,” said Shailesh Chandra, Managing Director of TMPV and TPEM.

The company’s CNG penetration increased from 16 per cent in FY24 to 22 per cent in Q1 FY25.

The commercial vehicle business generated ₹17,800 crore in revenue during the quarter, and the domestic wholesale business had 93,700 units. Domestic volumes grew by 6.7 per cent year-on-year, whereas exports remained flat.

JLR performance

Tata Motors JLR reported a free cash flow of £230 million for Q1.

JLR revenue was up by 5.4 per cent at £7.3 billion in Q1, the highest ever revenue on record.

JLR’s net debt was £1.0 billion, with gross debt of £4.8 billion. The company stated that JLR has increased investment from £15 billion to £18 billion over five years to support the delivery of the Reimagine strategy.

“JLR has delivered an outstanding set of results in the first quarter, with record revenues and an increase in year-on-year quarterly profits of nearly 60 per cent. We are bringing the lessons learned from this success on the racetrack to our luxury electric vehicles and later this year we will unveil our first next-generation luxury electric vehicle, Range Rover Electric, which has more than 41,000 customers on its waiting list,” said Adrian Mardell, Chief Executive Officer of JLR.

Electric vehicles sales dip

The company which is the market leader in electric vehicles pointed out a decrease in demand for electric vehicles during Q1 FY25. The penetration stood at 12 per cent with 16,600 vehicle units sold during the quarter. While the company witnessed a slowdown across the passenger vehicle segment, the electric vehicle sales were impacted due to the reduction of the FAME subsidy.

“20 per cent of our total volumes come up from electric vehicles. We expect the FAME 3 policy to have a subsidy for electric four-wheelers and the electric vehicle sales to come back once the FAME incentive is secured. The decline was due to the decrease in the FAME subsidy and the overall market slowdown in the passenger vehicle market has played in the electric vehicle as well in the first quarter. We have an extended portfolio catering to different segments and are optimistic about driving up the penetration of electric vehicles,” said PB Balaji.

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