Revenue, however, saw a 3% year-over-year increase, reaching INR 1.13 lakh crore.Tata Motors reported a 22% drop in net profit for the third quarter of FY25, amounting to INR 5,451 crore compared to INR 7,025 crore in the same period last year. The decline is attributed to higher sales discounts and weaker margins, despite a slight increase in overall revenue. The company's Q3 results reveal a complex picture with varying performance across its different segments.
Tata Motors' revenue from operations saw a modest 2.7% year-on-year increase, reaching INR 1,13,575 crore. This growth was driven by a slight improvement in sales.
Earnings before interest and tax (EBIT) reached INR 10,000 crore, a marginal improvement of 60 basis points year-on-year. Automotive free cash flow stood at INR 4,700 crore, boosted by improved sales, while finance costs decreased by INR 760 crore to INR 1,725 crore.
Tata Motors' overall performance in Q3 FY25 presents a mixed bag. While the company faced challenges with profitability and margins in some areas, it also demonstrated resilience and growth in others. The performance of JLR, the impact of government incentives, and the evolving EV market all played a role in shaping Tata Motors' Q3 results.
JLR performance
Jaguar Land Rover (JLR), Tata Motors' luxury vehicle subsidiary, achieved record quarterly revenue of 7.5 billion pounds, a 1.5% increase from the previous year. JLR’s EBIT margin reached 9%, its highest in a decade. However, its EBITDA margin experienced a decline of 200 basis points to 14.2%. Profit before tax (PBT), excluding exceptional items, for JLR was £523 million, down from £627 million a year earlier.
Commercial vehicle performance
The commercial vehicle (CV) segment experienced an 8.4% year-on-year decline in revenue, totalling INR 18,431 crore. This drop was a result of weaker sales and an unfavorable product mix. Despite the revenue decline, the CV segment’s EBITDA margin improved to 12.4%, aided by material cost savings and benefits from the government's production-linked incentive (PLI) scheme.
Passenger vehicle performance
The passenger vehicle (PV) segment also saw a revenue decrease of 4.3%, recording INR 12,354 crore. However, the PV segment's EBITDA margin improved by 120 basis points to 7.8%, thanks to cost-cutting measures and PLI incentives.
Within the PV segment, Tata Motors witnessed a 19% year-on-year increase in electric vehicle (EV) sales in the personal segment. However, fleet EV sales were negatively impacted by the expiry of FAME II subsidies.
