Tata Motors Limited (TML) has announced its consolidated financial results for the fiscal year 2023-24 (FY24), showcasing a remarkable surge in revenues, profitability, and operational excellence. The company reported record revenues of ₹437.9K Cr, marking a significant milestone and underscoring its strong market position and strategic focus.
In FY24, TML achieved an all-time high EBITDA of ₹62.8K Cr, representing robust operational performance and efficiency gains across its business segments. Additionally, the company reported its highest-ever Profit Before Tax (PBT) of ₹28.9K Cr, reflecting sustained growth and profitability. The net profit for the fiscal year stood at ₹31.8K Cr, a substantial increase over the previous year, highlighting Tata Motors’ strong financial performance and resilience in a dynamic business environment.
The strong financial performance also enabled Tata Motors to recognize a Deferred Tax Asset of ₹8.3K Cr at Jaguar Land Rover (JLR) and TML, further enhancing the company’s financial position and flexibility.
In Q4 FY24, Tata Motors delivered a robust performance, with revenues reaching ₹120.0K Cr, representing a 13.3% increase year-on-year. The company reported EBITDA of ₹17.9K Cr, up by 26.6% from the same period last year, while EBIT stood at ₹11.0K Cr, marking a significant improvement. All three automotive businesses within Tata Motors showcased strong performance during the quarter, contributing to the overall positive results. PBT (bei) for Q4 FY24 stood at ₹9.5K Cr, with a net profit of ₹17.5K Cr. Moreover, Tata Motors continued its debt reduction efforts, with net automotive debt further reducing to ₹16.0K Cr.
The Board of Directors has recommended a final dividend of ₹3/- per Ordinary Share and ₹3.10 per A Ordinary Share, along with a special dividend of ₹3/- per Ordinary Share and ₹3.10 per A Ordinary Share, subject to approval by the shareholders.
Tata Motors’ Jaguar Land Rover leads the performance
Jaguar Land Rover (JLR) also reported strong financial performance in FY24, with record revenue of £29.0 billion. PBT (bei) for the full year was £2.2 billion, the highest since FY15, underscoring the company’s resilience and operational efficiency. JLR achieved an EBIT margin of 8.5% for FY24, with a significant reduction in net debt to £0.7 billion. The company’s order book stood at around 133,000 vehicles at the end of FY24, with 76% of the orders attributed to Range Rover, Range Rover Sport, and Defender models, indicating sustained demand for its premium luxury vehicles.
PB Balaji, Group Chief Financial Officer, Tata Motors, expressed satisfaction with the FY24 results, highlighting the company’s highest-ever revenues, profits, and free cash flows. He reiterated Tata Motors’ commitment to financial prudence and debt reduction, stating:
“It is pleasing to report the FY24 results during which Tata Motors Group delivered its highest ever revenues, profits, and free cash flows. The India business is now debt free, and we are on track to become net automotive debt free on a consolidated basis in FY25. The businesses are executing well on their distinct strategies and therefore, we are confident of sustaining this strong performance in the coming years.”
Looking ahead, Tata Motors remains cautiously optimistic about domestic demand for the full year, with expectations of relatively weaker performance in H1. Despite emerging concerns about overall demand, the premium luxury segment is anticipated to remain resilient. The company remains confident of delivering a strong performance in FY25, building on its strategic strengths and market positioning.
