Tata Motors Passenger Vehicles (500570) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 revenue rose 5.7% year-over-year to ₹108,048 crore, with EBITDA margin at 14.4% and EBIT margin at 8.4%; net profit reached ₹5,692 crore, up ₹2,391 crore YoY.

• Profit before tax (before exceptionals) increased to ₹8,828 crore, up from ₹5,541 crore YoY.

• Free cash flow for the automotive business was ₹1,200 crore, impacted by seasonality; net automotive debt at ₹18,600 crore, slightly higher sequentially.

• Major corporate actions underway: demerger of CV and PV businesses, merger of Tata Motors Finance with Tata Capital, and DVR cancellation, all progressing on schedule.

• JLR posted record Q1 revenue of £7.3 billion (+5.4% YoY), EBIT margin at 8.9%, and PBT (bei) up 59% YoY to £693 million.

Financial highlights

• Group revenue grew 5.7% YoY, with volume up 2.5% and positive mix impact; consolidated EBITDA margin at 14.4% (flat YoY), EBIT margin at 8.4% (+30 bps YoY).

• JLR free cash flow was £230 million, with strong liquidity of £5.3 billion and net debt at £1 billion.

• Tata Commercial Vehicles revenue reached ₹17,849 crore (+5.1% YoY), with EBITDA margin at 11.6% and EBIT margin at 8.9%.

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

• Tata Motors Finance AUM at ₹42,154 crore, GNPA improved to 5.8% from 8.1% YoY.

Outlook and guidance

• JLR maintains FY25 guidance: EBIT margin ≥8.5%, revenue >£30 billion, net cash positive, and investment of £3.5 billion, despite anticipated short-term production constraints in Q2 and Q3.

• Gradual improvement in domestic demand expected, supported by infrastructure investments, healthy monsoons, and festive demand; global demand likely to remain muted.

• Commodities expected to remain range-bound; confidence in sustaining performance for the full year.

• Commercial vehicle demand expected to benefit from policy continuity and infrastructure push.

• Passenger vehicle demand anticipated to pick up during the festive period, with new launches planned.