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Automaker Tata Motors Limited will focus on improving financial strength and adopt strategies that will focus on market growth, technology, and deepen its penetration.
Speaking to the shareholders at the company’s 79th Annual General Meeting, chairman N Chandrasekaran said that the total vehicle sales increased 7.4 per cent year-on-year to over 13.8 lakh units. The revenue was ₹437.9K crore and a net profit of ₹31.8K crore (+₹29.1K Cr over the previous year). Furthermore, the India automotive business is now debt-free, and the company is well on track to make JLR debt-free in FY25.
“The coordinated actions by the central banks of several countries have helped moderate inflation albeit the absolute price levels continue to remain high. The economic scenario is expected to stabilise with global growth estimated to be around 3 per cent during the next couple of years. In the first phase of this ongoing multi-year journey, the company has delivered an excellent performance in FY24,” said N Chandrasekaran
The company undertook corporate decisions to grow its businesses further in FY24.
“During FY24, the company also undertook several strategic corporate actions to simplify and strengthen its capital structure. These included completing the delisting of its American Depositary Shares from the New York Stock Exchange, diluting a part of its stake in Tata Technologies Ltd through a successful IPO, and securing shareholder approval for a capital reduction scheme for the DVR shares. To enable sharper execution the Board has proposed the demerger of the Company into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR and its related investments in another entity,” he said.
Strategy
Going ahead the company will focus on developing and strengthening its business.
“The PV business will focus on market-beating growth, technology, and brand leadership. The business will continue to invest in products, platforms, electrical and electronic architectures, and vehicle software to remain competitive. The EV business will focus on deepening penetration through multiple product launches, focus on market development, and charging network. The CV business will focus on driving technology and brand leadership to deliver consistent, value-accretive growth. JLR will continue to double down on its journey to become a premium luxury OEM, focus on enhanced customer love and continue to invest in products and technologies,” added N Chandrasekaran.
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