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CHENNAI: Tata Motors clocked a consolidated net profit of around Rs 3800 crore in Q2FY24 even as its revenue jumped 32% to Rs 105128 crore. The company’s EBITDA at Rs 14400 crore was up 86.4% as its auto verticals were on a profitable growth path. Net automotive debt reduced to Rs 38700 crore.
“We will see a stronger performance by passenger vehicles in the next two quarters as the benefits of the new launches come through,” said PB Balaji, CFO, Tata Motors.Tata Motors net domestic auto debt is down to Rs 7600 crore and with the infusion of Rs 1600 crore from TPG (the company is selling nearly 10% stake in Tata Technologies to TPG) and the Tata Technologies IPO on the anvil, “we are very comfortable that this business will go net cash by end March,” he added. “Every one of our verticals will work towards target profitability.”
The company management indicated that H2 will see improved performance as EV battery prices climb down and new product launches drive sales growth. “We have had a good festive season beginning with nearly 50,000 units in passenger vehicle sales in October and with the new Safari and Harrier just launched that momentum will continue in retail,” said Balaji.
“We are looking to keep the wholesale supply chain lean and mean and dealer inventory well managed and make sure retails remain higher than wholesale.” Currently the company’s installed capacity in PV is 55,000 units per month with another 30,000 units of Sanand II capacity to become fully operational by Q4 of this fiscal. In commercial vehicles the capacity utilisation is 60% plus. The CV business profitability this quarter has been driven by lower commodity prices, better mix and no discounting, he added.
In terms of standalone breakup, JLR saw a 30.4% jump in revenue to £6.9 billion and EBITDA at 14.9% (up 430 bps). Tata CV revenue was up more than 22% at Rs 20100 crore while EBITDA at 10.4% was up 540 bps. PV revenue however was down 3% at Rs 12200 crore and EBITDA at 6.5% was up 110 bps.
“We will see a stronger performance by passenger vehicles in the next two quarters as the benefits of the new launches come through,” said PB Balaji, CFO, Tata Motors.Tata Motors net domestic auto debt is down to Rs 7600 crore and with the infusion of Rs 1600 crore from TPG (the company is selling nearly 10% stake in Tata Technologies to TPG) and the Tata Technologies IPO on the anvil, “we are very comfortable that this business will go net cash by end March,” he added. “Every one of our verticals will work towards target profitability.”
The company management indicated that H2 will see improved performance as EV battery prices climb down and new product launches drive sales growth. “We have had a good festive season beginning with nearly 50,000 units in passenger vehicle sales in October and with the new Safari and Harrier just launched that momentum will continue in retail,” said Balaji.
“We are looking to keep the wholesale supply chain lean and mean and dealer inventory well managed and make sure retails remain higher than wholesale.” Currently the company’s installed capacity in PV is 55,000 units per month with another 30,000 units of Sanand II capacity to become fully operational by Q4 of this fiscal. In commercial vehicles the capacity utilisation is 60% plus. The CV business profitability this quarter has been driven by lower commodity prices, better mix and no discounting, he added.
In terms of standalone breakup, JLR saw a 30.4% jump in revenue to £6.9 billion and EBITDA at 14.9% (up 430 bps). Tata CV revenue was up more than 22% at Rs 20100 crore while EBITDA at 10.4% was up 540 bps. PV revenue however was down 3% at Rs 12200 crore and EBITDA at 6.5% was up 110 bps.
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