Tata Motors Navigates Profit Dip with Strategic JLR Gains

Tata Motors reported a 22% decline in net profit for Q3 FY25, driven by drops in the passenger and commercial vehicle sectors. Despite this, Jaguar Land Rover achieved record revenue. The company's performance varied across segments, with expectations of a rebound in demand for commercial vehicles by Q4 FY25.

Tata Motors witnessed a notable 22% decrease in its consolidated net profit for the third quarter ending December 2024, attributed largely to diminished returns in its passenger and commercial vehicle sectors.

The company had previously reported a net profit of Rs 7,145 crore for the corresponding period last fiscal year. Total revenues during this quarter were Rs 1,13,575 crore, a slight increase from Rs 1,10,577 crore a year ago, despite total expenses rising to Rs 1,07,627 crore.

Notably, its subsidiary Jaguar Land Rover achieved record earnings of 7.5 billion pounds, marking a 1.5% increase from the previous year. With expected improvements and a favorable economic outlook, Tata Motors anticipates a robust demand for its commercial vehicle segment in Q4 FY25.

(With inputs from agencies.)