Tata Motors Consolidated Q3 FY25 Results

Mumbai 29 January 2025: Tata Motors Ltd.(TML) announced its results forquarterending December 31, 2024.

 Tata Motors Consolidated:

For Q3 FY25, TML delivered revenues of ₹113.6K Cr (up2.7%), EBITDA at ₹15.5K Cr (13.7%, down 60bps)and EBIT of ₹10.0K Cr (8.9%, up60bps), witnessing strong improvement over Q2 FY25 as supply challenges eased. PBT (bei) for Q3 FY25 stoodat ₹7.7K Cr,down ₹75Cr while Net Profit was ₹5.6K Cr. For YTD FY25, the business reported a strong PBT (bei) of ₹22.3K Cr, an improvement of ₹2.8K Cr over the previous year.

JLR delivered a robust performance in Q3 FY25 with record quarterly revenue,highest EBIT margin in a decade and a ninth successive profitable quarter.CV revenues declinedon account of lower volumes and mix, however EBITDA margins improved to 12.4% (up 130 bps) primarily reflecting material cost saving and the impact of PLI incentive. PV revenues were down 4.3% however EBITDA margin wasup by 120 bps at 7.8% due to cost controls and PLI incentive.

The company received sanction of Automotive Production Linked Incentives (PLI)in December 2024. Accordingly, an income of ₹351 Cr has been recognized. 

Looking Ahead:

We expect underlying domestic demand to improve gradually on account of infrastructure spends, slew of exciting product launches and stable interest rates. While JLR wholesales are expected to improve further in Q4 FY25, we remain watchful on the overall demand situation, particularly in China. 

PB Balaji, Group Chief Financial Officer, Tata Motors said: “In Q3, the performance of all businesses improved sequentially.For YTD FY25, our business grew 1.6% over the previous year to ₹323.0KCrand delivered a robust PBT (bei) of ₹22.3KCr(+14.5%).The fundamentals of the business are strong and therefore despite external challengeswe are confident ofdelivering another strong performance this year.”

Highlights

• Q3 FY25 Revenue at £7.5 billion (+1.5%), EBITDA 14.2% (-200 bps), EBIT 9.0% (+20 bps), PBT (bei) £523 million
• YTD FY25 Revenue at £21.2 billion (flat), EBITDA 14.0% (-180 bps), EBIT 7.8% (-50 bps), PBT (bei) £1,614 million
• JLR delivered a robust third quarter in FY25, with record Q3 revenue, the highest EBIT margin in a decade and a ninth successive profitable quarter
• Cash balance was £3.5 billion and net debt £1.1 billion, with gross debt of £4.6 billion
• Total liquidity was £5.1 billion, including the £1.6 billion undrawn revolving credit facility

Reimagine Transformation continues:

Modern Luxury

• Jaguar Type 00 design vision revealed in Miami in December 2024
• Defender OCTA driven by global press for the first time to widespread acclaim
• Defender to compete in Dakar and FIA World Rally-Raid Championship from 2026 in vehicle based on Defender OCTA, showcasing its durability and strength
• Range Rover’s highly crafted SV Bespoke vehicle, the Candeo, featuring hand applied paint and 18K solid gold badging, signals the future of SV Bespoke personalisation for Range Rover clients.
• Range Rover wins Made in UK award at annual Walpole British Luxury Awards

Electrification / Sustainability

• Range Rover Electric development continues with the waiting list now at 57,000
• Q3 Range Rover plug-in electric hybrid sales grew by 163% year-on-year as more clients take a step towards electrification
• JLR Circularity Lab has delivered industry first recycled seat foam proof of concept for use in future vehicles to reduce emissions and waste

Enterprise

• JLR invests in new special paint facilities in Castle Bromwich, UK, and Nitra, Slovakia, to meet growing demand for vehicle personalisation and reduce emissions
• JLR to partner with Tata Communications (TCL), using its MOVE™ platform on our next generation vehicles to enable continuous connectivity in remotest locations from 2026

Financials

JLR delivered a robust performance in Q3 FY25 with record Q3 revenue and the highest EBIT margin in a decade, and a ninth successive profitable quarter. Revenue for the quarter was £7.5 billion, up 1.5% YoY, while YTD revenue at £21.2 billion was flat YoY.Compared to Q2 FY25, revenue was up 16%, driven by higher wholesales following supply disruptions in Q2 FY25.PBT (bei) in Q3 was £523 million, down from £627 million a year ago, while YTD FY25 PBT (bei) was £1.6 billion, up 7% YoY. EBIT margin was 9% (up 20 bps YoY). The increase in profitability year-on-year reflects higher volumes, improved mix and a reduction in depreciation and amortisation (D&A) driven by Castle Bromwich production cessation and ICE end of life extensions, partially offset by an increase in VME, warranty costs and unfavourable FX revaluation.

Looking ahead

Looking ahead, while mindful of the challenging economic backdrop, the Company is on track to achieve its profitability and

cash flow targets in FY25, with EBIT margin ≥8.5% and positive net cash.

Adrian Mardell, JLR Chief Executive Officer, said: “JLR has delivered a robust performance in the third quarter of our financial year, and further milestones in our Reimagine strategy. Thanks to our people and partners we achieved record revenue and our best EBIT margin in a decade and our electrification plans are progressing. We revealed the beautiful, reimagined Jaguar design vision – Type 00 – in Miami, and later this year, we will launch Range Rover Electric.”

Highlights

• Q3 FY25revenue at ₹18.4KCr (-8.4%), EBITDA 12.4% (+130 bps), EBIT 9.6% (+100 bps), PBT (bei) ₹1.7K Cr.
• YTDFY25 revenue at ₹53.6KCr (-6.4%), EBITDA 11.6% (+120 bps), EBIT 8.8% (+110 bps), PBT (bei) ₹4.6K Cr.
• Domestic Vahan market share at 37.7% for YTDFY25.HGV+HMV 49.1%, MGV 38.4%, LGV 31.2%, Passenger 38.0%.
• HCV, ILMCV and Passenger Carriers continue to perform better than industry.Work underway on improving SCV competitiveness
• ACE EV volumes witnessed 26% growth, with launch of new value proposition in post FAME2 incentives scenario.
• 50+ product variants introduced in Q3FY25.

Bharat Mobility Expo 2025

• Introduced our new mantra, ‘Better Always’, embodying our unwavering dedication to driving growthand success, for our customers and for our nation.
• Showcased 14 smart vehicles, all integrated with ADAS, alongside 6 cutting-edge intelligent solutions that provide real-time performance insights, and 4 advanced aggregates, including –
  • Prima E.55S:Battery electric prime mover to decarbonise logistics operations across sectors
  • Prima H.28:Indigenously developed H2 ICE truck with range of ~550km
  • Prima G.55S:India’s first LNG prime mover with unmatched range of up to 2400km
  • Azura T.19: Powered by Bio-diesel with future-ready design and an all-new architecture
  • Ace Flex-fuel:A new powertrain option added to the ever-popular Ace range
  • Yodha CNG RMC: Unique, versatile and eco-friendly solution for the infrastructure sector
  • Intra EV Pickup:India’s most advanced electric pickup for diverse applications

Financials

In Q3 FY25, domestic wholesale CV volumes were 91.1K units, marginally lower as compared to 91.9K units in Q3 FY24, but marking significant improvement as compared to 79.8K units recorded in Q2 FY25. Propelled by a resurgence in construction and mining activities post-monsoon, plus the festive season demand, HCV segment witnessed robust sequential growth. Exports were at 4.5K units down 6% YoY.Revenues were down by 8.4% YoY to ₹18.4KCr, however EBITDA margins improvedto 12.4% (up 130 bps YoY) led by savings in commodity costs and PLI incentive (90bps). On a year to date basis, the CV business delivered EBITDA margin of 11.6% (+120 bps YoY) and PBT (bei) of ₹4.6K Cr.

Looking ahead

Looking ahead we expect demand to improve in Q4 FY25 across most segments. The key aspects to watch out in 2025 will be government’s focus on infrastructure spend, and growth in end use segments, which will augur well for the commercial vehicles industry. We continue to drive actions to reduce the impact of cyclicality in our results and deliver strong margins and ROCE. 

Girish Wagh, Executive Director Tata Motors Ltd said: “In Q3FY25, HCV segment witnessed robust sequential recovery, even as the YoY sales declined 9% due to limited growth in end-use segments. The ILMCV segment and passenger carrier segment witnessed ~3% and ~30% YoY growth, whereas the SCV segment experienced marginal decline due to ongoing financing challenges.The business has delivered strong EBITDA and EBIT margin of 12.4% and 9.6%, respectively, with cost control and reflecting PLI incentive. At the Bharat Mobility Expo, we unveiled a bold new era in mobility, showcasing 14 smart vehicles, all integrated with ADAS, alongside 6 cutting-edge intelligent solutions that provide real-time performance insights, and 4 advanced aggregates. With relentless innovation and agility, we will continue to redefine the future of mobility with sustainable, intelligent, and cutting-edge solutions”.

Highlights

• Q3 FY25 revenue at ₹12.4K Cr, (-4.3%), EBITDA 7.8% (+120 bps), EBIT 1.7% (-40 bps), PBT (bei) ₹0.3K Cr.
• YTD FY25 revenue at ₹35.9K Cr, (-5.3%), EBITDA 6.6% (+50 bps), EBIT 0.7% (-90 bps), PBT (bei) ₹0.7K Cr.
• VAHAN registration market share at 13.3% in YTD FY25.
• EV market share at 61% in YTD FY25.
• Alternative powertrains continue to grow. EV penetration at 11%, CNG at 24% in YTD FY25.
• Punch sold over 200,000 units to emerge as the highest selling car model in India in CY24.
• Introduced the 2025 Tiago, Tiago.ev, and Tigor with New Tech, New Design and New colours.
• With over 2 lakh Tata EVs already covering more than 5bn kilometers, eliminated 700,000 tonnes of CO₂ emission.

Bharat Mobility Expo 2025

• Unveiled our ‘Future of Mobility’ portfolio, showcasingthe greenest, smartest, and most advanced suite of mobility solutions.
• Announced the All-New Tata Sierra – reimagined for a new era, ready to inspire and lead once again.
• Showcased the Harrier.ev, the most powerful and technologically advanced SUV from the Tata stable, with advanced features like remote summon.
• Presented the next chapter of automotive excellence with the Avinya X concept— a bold leap into the future of luxury mobility.
• Unveiled exciting editions of SUV range with the Stealth and Bandipur editions.
• Reinforced multi-powertrain strategy with the showcase of the flex fuel powertrain option for Punch, capable of operating across complete range of ethanol based fuel blends.

Financials

PV volumes for the quarter were steady at 140.0K units (+1.1% YoY), while revenues in Q3 FY25 were down 4.3% YoY at ₹12.4K Cr. EBITDA margins in Q3FY25 were 7.8% up 120 bps on a YoY basis, with cost reduction actions and incentives more than offsetting adverse realizations.

Looking ahead

In line with the growth rates seen in the first nine months, the PV industry is poised for moderate growth in FY25. Segment shifts in the industry are likely to continue with strong growth in the SUV segment, and continued traction for emission-friendly powertrains. With multiple product launches, innovations and a strengthened multi-powertrain strategy, Tata Motors is well poised for further growth in CY 25.

Shailesh Chandra, Managing Director TMPV and TPEM said: “In Q3 FY25, we recorded wholesales of 140K units (1.1% growth over Q3 FY24) and retail sales growth of 6% over Q3FY24. This has allowed us to sharply reduce our channel inventory ahead of Q4 FY25. In the EV segment we registered 19% growth in the domestic personal segment, although our fleet volumes declined YoY due to the expiry of FAME II subsidy. Our new product launches including Curvv, Curvv.ev, Nexon CNG and Nexon.ev 45 continue to see strong customer traction. Overall, in Q3 FY25, the business delivered resilient performance, with volumes and profitability improving sequentially.  At the Bharat Mobility Global Expo 2025, we unveiled our ‘Future of Mobility’ portfolio blending innovative design and smart engineering, with a profound understanding of customer needs. Looking ahead, we remain agile and optimistic as we continue to leverage the demand our new products, expand our network and focus on micro-markets to increase our volumes and market share.”

(Consolidated Numbers, Ind AS)

Finance Costs

Finance costsreducedby ₹760Cr to ₹1,725Cr in Q3FY25, due to reduction in gross debt during the period.

Joint ventures, Associates and Other income

For Q3 FY25, net loss from joint ventures and associates amounted to ₹30 Cr compared to profit of₹193 Cr in Q3 FY24. Other income (excluding grants) was ₹727 Cr in Q3 FY25 versus ₹752 Cr in Q3 FY24.

Free Cash Flows

Free cash flow (automotive) for the quarter, was at ₹4.7K Cr driven by improvement in volumes. Net automotive debt was at ₹19.2K Cr.