Tata Motors Q2 Struggles: Profits Decline Amid Supply Hurdles

Tata Motors experienced an 11.18% decline in net profit for July-September 2024, with revenue dropping 3.5% to Rs 1,01,450 crore. Challenges included external supply issues affecting Jaguar Land Rover. Despite pressures, improved pricing and cost-saving measures helped maintain margins in various segments.

Automobile titan Tata Motors faced a challenging second quarter for fiscal year 2024-25, recording an 11.18% dip in consolidated net profit, landing at Rs 3,343 crore. The company's revenue also witnessed a decline of 3.5% year-on-year, totaling Rs 1,01,450 crore, with EBITDA standing at Rs 11,736 crore and the EBITDA margin narrowing to 11.6%, a reduction of 230 basis points.

"Growth in the quarter was impacted due to significant external challenges," revealed Group CFO PB Balaji, expressing optimism for a robust second half should supply hurdles ease and demand rise. Amid these difficulties, Tata Motors has focused on enhancing growth, competitiveness, and cash flows, anticipating a performance upswing in H2 of FY25.

Jaguar Land Rover (JLR) revenue fell 5.6% to EUR6.5 billion, hindered by temporary supply constraints. Despite a downtick in commercial vehicle (CV) and passenger vehicle (PV) volumes, strategic pricing and cost-saving initiatives bolstered EBITDA margins. JLR CEO Adrian Mardell celebrated a 25% uptick in semi-annual profits, crediting strong global demand and investments in EV production preparations.

(With inputs from agencies.)