Tata Motors (TMCV) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 revenue rose 5.7% YoY to ₹108,048 Cr, with EBITDA margin steady at 14.4% and EBIT margin at 8.4%.

• Standalone revenue for Q1 FY25 was ₹16,862 crore, up 6.5% YoY, and profit after tax reached ₹2,190 crore, a turnaround from a loss last year.

• Profit before tax (before exceptional items) increased to ₹8,828 Cr, up from ₹5,541 Cr in Q1 FY24.

• Free cash flow for the automotive business was ₹1,200 Cr, lower sequentially due to seasonality.

• Net automotive debt increased slightly to ₹18,600 Cr, reflecting seasonal working capital needs.

Financial highlights

• JLR posted record Q1 revenue of £7.3b, up 5% YoY, with EBIT margin at 8.9% and PBT (before exceptionals) at £693m, up 59% YoY.

• Tata Commercial Vehicles achieved highest-ever Q1 revenue at ₹17,849 Cr, with EBITDA margin at 11.6% and EBIT margin at 8.9%.

• Tata Passenger Vehicles revenue declined 7.7% YoY to ₹11,847 Cr, with EBITDA margin at 5.8% and EBIT margin at 0.3%.

• Operating margin improved to 11.54% in Q1 FY25 from 8.80% in Q1 FY24.

• JLR free cash flow was £230m, with net debt at £1b after a £387m dividend to the parent.

Outlook and guidance

• Expect gradual improvement in domestic demand, supported by infrastructure investment, healthy monsoons, and festive demand.

• JLR maintains FY25 guidance of ≥8.5% EBIT margin, >£1.8b free cash flow, and net cash positive by year-end.

• Board approved a Composite Scheme of Arrangement to demerge the Commercial Vehicle business and merge the Passenger Vehicle business, resulting in two separate listed entities.

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