Even though the September quarter results were poor due to issues like supply shortages, the Street were persuaded by the company’s speech and expectation for H2 2025, as Tata Motors shares rose as much as 3.16% to ₹831.20 apiece on the BSE on Monday, November 11.
Tata Motors Q2 Results
Tata Motors reported an 11% year-over-year drop in net profit to ₹3,343 crore from ₹3,764 crore in the previous year when it released its financial results for the quarter that ended in September 2024 (Q2 FY25). In addition, operating revenue decreased by 3.5% to ₹1.01 lakh crore from ₹1.05 lakh crore during the same time last year. With an EBITDA margin of 11.4%, the company reported an EBITDA of ₹11,600 crore.
JLR reported that performance was impacted by short-term supply difficulties, which led to a 5.1% EBIT margin and a 5.6% drop in revenue to £6.5 billion. Despite reduced volumes, favorable pricing and material cost improvements helped EBITDA margins expand to 10.8%, despite a 13.9% decline in commercial vehicle sales. A stronger product mix and cost-cutting measures kept EBITDA margins stable at 6.2% despite a 3.9% decline in passenger vehicle revenue.
Tata Motors Review
According to Jefferies India Pvt Ltd, Tata Motors’ Q2 EBITDA dropped 15% year over year and was 9% worse than Jefferies’ projections due to a reduced JLR margin. Even though JLR is dealing with challenging macro conditions in China and Europe, delayed shipments and limited supply of aluminum also had an effect on 2Q. JLR kept its FY25 margin estimate and anticipates a substantially improved 2H. The demand for PV and CV in India has also decreased, although Jefferies reports that CV profitability is holding up well.
About Tata Motors
Tata Motors Limited is an Indian multinational automotive corporation headquartered in Mumbai and a member of the Tata Group. The company manufactures automobiles, trucks, vans, and buses.
South Korean Tata Daewoo and British Jaguar Land Rover are examples of subsidiaries. Hitachi (Tata Hitachi Construction Machinery) and Stellantis, which manufacture auto parts for Fiat Chrysler and Tata-branded automobiles, are joint ventures of Tata Motors.
