Revenue Rs.120.0K Cr (+13.3%), EBITDA at Rs.17.9K Cr (+26.6%), PBT (bei) Rs.9.5K Cr (+4.4K Cr), PAT Rs.17.5K(+12K Cr) Cr, Automotive Free Cash Flows Rs.14.1K Cr (+2.8K Cr) vs PY)
Mumbai, May 10, 2024: Tata Motors Ltd. (TML) announced its results for quarter ended March 31, 2024.
Tata Motors Consolidated: For FY24, TML reported record revenues of Rs. 437.9K Cr, an all-time high EBITDA at Rs. 62.8K Cr, highest ever PBT (bei) of Rs.28.9K Cr (+Rs.27.1K Cr over the previous year) and net profit of Rs.31.8K Cr (+Rs.29.1K Cr over the previous year). The strong performance has also helped to recognize a Deferred Tax Asset of Rs.8.3K Cr at JLR and TML. In Q4 FY24, TML delivered a strong performance with revenue of Rs.120.0K Cr (up 13.3%), EBITDA at Rs.17.9K Cr (up 26.6%) and EBIT of Rs.11.0K Cr (+Rs.3.8K Cr) with all three auto businesses delivering a strong performance. PBT (bei) stood at Rs.9.5K Cr (+Rs.4.4K Cr) and net profit was Rs.17.5K Cr (+Rs.12.0K Cr). Net automotive debt reduced further to Rs.16.0K Cr.
Dividends: The Board of Directors have recommended a final dividend of Rs. 3/- per Ordinary Share and Rs.3.10 per A Ordinary Share and a special dividend of Rs. 3/- per Ordinary Share and Rs.3.10 per A Ordinary Share subject to approval by the shareholders.
Looking Ahead: We remain cautiously optimistic on domestic demand over the full year and expect H1 to be relatively weaker. ? The premium luxury segment demand is likely to remain resilient despite emerging concerns on overall demand. ?Despite this, we are confident of delivering a strong performance in FY25.
PB Balaji, Group Chief Financial Officer, Tata Motors said, “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.”
Highlights
Reimagine Transformation continues.
Financials JLR continued its strong financial performance trend in the financial year, with another record-breaking quarter in Q4 FY24. Revenue for the quarter was £7.9 billion, up 11% versus Q4 FY23 and up 6% versus Q3 FY24. Revenues for FY24 were £29.0 billion - JLR’s highest ever full year revenue and up 27% compared to the prior year.
PBT (bei) in Q4 was £661 million (+£293 million yoy) and EBIT margin was 9.2% in Q4, (+270bps yoy). The higher profitability yoy reflects increased volumes and reduced material costs, offset partially by increased marketing spend compared to a year ago. Profit after tax (“PAT”) in Q4 was £1.4 billion vs a profit of £259 million in the same quarter a year ago. PBT for FY24 was £2.2 billion – the highest since FY15; and PAT for FY24 was £2.6 billion. PAT also factors in the recognition of a deferred tax asset (DTA) of £1.0 billion due to a reassessment of future recoverability tax losses and allowances.
Free cash flow for the quarter was £892 million and £2.3 billion for the full year, the highest ever full year cash flow. The year ended with a cash balance was £4.2 billion and net debt £0.7 billion and a total liquidity was £5.7 billion, including the £1.5 billion undrawn revolving credit facility maturing April 1, 2026.
Looking ahead We will continue to focus on brand activation to maintain order book. We expect EBIT margins in FY25 to be around the FY24 level. We anticipate a modest increase in investment spend to £3.5b but still expect to become net debt zero during FY25.
Adrian Mardell, JLR Chief Executive Officer, said, “This has been a year of great strategic progress at JLR and I would like to thank our clients, our people, our suppliers and partners for their role in our success. We have delivered a record financial performance for the company, generating free cashflow of £2.3 billion, enabling us to reduce net debt to £0.7 billion. The foundation of this performance was the sustained global demand for our modern luxury vehicles, led by our Range Rover and Defender brands, underpinned by a consistent focus on operational improvement. We are entering the next exciting phase of our Reimagine strategy which will see us bring to life our modern luxury electric vehicles and deliver an accompanying modern luxury experience for our clients, ensuring we continue to vigorously address the challenges we have encountered in 2024.”
Green transformation continues
Financials In Q4 FY24, domestic wholesale CV volumes were 104.6K units, lower 7% yoy on account of increased pre-buy in Q4 FY23 due to BS6 Phase II transition. Exports were at 4.5K units increasing 13% yoy. However, revenues improved by 1.6% yoy to Rs.21.6K Cr on account of improved pricing and lower VME’s. EBITDA and EBIT margins of 12.0% (up 190 bps yoy) and 9.6% (up 100 bps yoy), respectively were delivered. For the full year, while overall volumes declined by 4%, HCV volumes increased by 5%.
Looking ahead With promising GDP growth outlook, incentives from government to improve productivity in both manufacturing and agriculture sectors, and continuing focus on infra, demand for CV’s is expected to improve from H2 FY25. We remain cautiously optimistic about domestic demand while keeping a close watch on geopolitical developments, interest rates, fuel prices and inflation. We will continue to deliver strong EBITDA performance and focus on net cash will continue.
Girish Wagh, Executive Director Tata Motors Ltd said, “The Indian CV industry grew by a modest 2% in volumes during FY24, impacted by a high base effect of FY23, elections held across 5 states and the announcement of general elections. At Tata Motors, we strengthened our portfolio with the introduction of new passenger and cargo mobility solutions, stepped-up the thrust on digitalization, enriched customer engagement and experience with stronger partnering and made holistic progress on our sustainability agenda. Our sharp focus on profitable growth resulted in the CV business recording its highest-ever revenues of Rs.78.8K Cr and profits of Rs.6.1K Cr in FY24. Going forward, we will intensify our efforts to grow market share, profitably and consistently, in every business segment by delivering more value to customers with innovative products, smarter services and holistic mobility solutions.”
Financials In Q4, PV volumes were at 155.6K units (+14.8% yoy) supported by new SUV facelifts and multiple power trains. Nexon continued to be the highest selling SUV in FY24 and along with the Punch was amongst top 5 models sold in India. Revenues in Q4 were up 19% yoy at Rs. 14.4K Cr, while EBIT margins improved by 150 bps yoy to 2.9% owing to operating leverage on improved volumes and savings in commodity costs. In Q4, PV (ICE) business delivered double digit EBITDA margins and EV business was EBITDA positive (before R&D spends) at 1.1%. On full year basis, the PV business delivered ~9% revenue growth and highest ever PBT (bei) at Rs. 1.4K Cr (+Rs. 0.7K Cr yoy).
Looking ahead We expect the demand for passenger cars to remain strong, although the high base effect, coupled with extraneous factors elections, heat wave, etc. may keep the growth rate moderate. We will continue to focus on retails and deliver market beating growth to sustain double digit EBITDA margins and positive free cash flows for PV business. We will continue to proactively drive EV penetration through new product launches and ecosystem development and improve profitability.
Shailesh Chandra, Managing Director TMPV and TPEM said, “Passenger vehicle sales in India set a record in FY24 with over 4.2 million units sold, driven by SUVs (50% of overall sales) and emission-friendly powertrains. Tata Motors recorded its third consecutive year of highest sales volumes with 6% growth in wholesales and 10% in retail sales over FY23. Our multi-powertrain approach and sharp focus on green technologies increased the penetration of CNG and electric vehicles to 29% in the overall portfolio. We sold 73.8K EVs during the year (up 48% vs FY23) and crossed milestone of 150,000 cumulative EV production. Overall, the business recorded its highest-ever turnover with annual volumes of 573.5K units, growing by 6.0% over FY23, and recorded highest ever profits of Rs.1.4K Cr.”
(Consolidated Numbers, Ind AS)
Finance Costs Finance costs reduced by Rs.239 Cr to Rs. 9,986 Cr in FY24, due to reduction in gross debt during the period.
Joint ventures, Associates and Other income For the year, net profit from joint ventures and associates amounted to Rs.700 Cr compared with a net profit of Rs.336 Cr in FY23. Other income (excluding grants) was Rs. 2,979 Cr in FY24 versus Rs. 1,720 Cr in FY23.
Free Cash Flows Free cash flow (automotive) for the year, was highest ever at Rs.26.9K Cr (as compared to Rs.7.8K Cr in FY23) owing to significant improvement in cash profits and favourable working capital.
