Days after Ratan Tata’s death one of his favorite companies Tata Motors has reported decline in consolidated net profit for Q2 by 9.9 pc to Rs 3,450 cr.
Noel Tata led Tata Motors on Friday reported a 9.9 per cent decline in consolidated net profit to Rs 3,450 crore for the second quarter ended September 2024, mainly impacted by lower sales. Tata Motors was one of the favourite companies of late legendary businessman Ratan Tata. He had done many experiments from Tata Nano To Indica through the company.
After the late Ratan Tata, now his step-brother Noel Tata is chairman of the Tata Trusts and in that capacity chairs all the Trusts that comprise the Tata Trusts. The company had posted a consolidated net profit of Rs 3,832 crore in the same quarter of the last fiscal, Tata Motors said in a regulatory filing.
Its consolidated revenue from operations stood at Rs 1,00,534 crore compared to Rs 1,04,444 crore in the year-ago period, it added. Total expenses stood at Rs 97,330 crore against Rs 1,00,649 crore in the same quarter a year ago, the company said.
JLR Revenue Fell
JLR revenue fell 5.6 per cent to 6.5 billion pounds. Profitability was impacted on account of temporary aluminium supply constraint and a hold placed on 6,029 vehicles for additional quality control checks, Tata Motors said.
“Our teams responded brilliantly to the aluminium supply shortages we experienced in the quarter, so we could deliver as many orders as possible to clients…We have invested 250 million pounds so far to prepare our Halewood UK plant for electric vehicle production, and with strong global demand for our products, we are well positioned to deliver on our commitments again this financial year,” JLR CEO Adrian Mardell said.
For JLR, the company said, “Both production and wholesale volumes are expected to pick up strongly in the second half as the aluminium supply situation normalises, and we will continue our diligent management of costs. We hold our full-year guidance for revenue of 30 billion pounds”.
Tata Motors On Decline In Profit
Tata Motors said its passenger vehicle volumes dropped 6.1 per cent to 1,30,500 units compared to the corresponding quarter of the last fiscal due to slow consumer demand and seasonal factors. PV revenues in Q2 FY25 declined 3.9 per cent year-on-year to Rs 11,700 crore.
“The passenger vehicle industry in Q2 FY25 witnessed about 5 per cent decline in registrations, resulting in continued build-up of channel inventory. Sales of EVs were additionally impacted by the lapse of certain subsidies. We moderated our offtakes in Q2 to proactively keep our channel inventory under control,” Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Passenger Electric Mobility Ltd (TPEM) Managing Director Shailesh Chandra said.
On the outlook for PVs, Tata Motors said it expects the industry wholesales to be lower to enable channel inventory reduction ahead of the new calendar year.
“We will drive significant growth in retail on the back of new model launches and a comprehensive marketing campaign while keeping channel inventory in check,” the company said.
In the commercial vehicles (CV) segment, Tata Motors said in Q2 FY25, domestic wholesale volumes slipped 19.6 per cent to 79,800 units, impacted by a slowdown in infrastructure project execution, a reduction in mining activity and an overall drop in fleet utilisation due to heavy rains. CV export volumes also fell 11.1 per cent to 4,400 units.
CV revenues dipped 13.9 per cent year-on-year to Rs 17,300 crore, the company added.
“Q2 FY25 moderated the positive momentum seen by the commercial vehicles industry at the start of the fiscal, due to slowdown in infrastructure project execution, reduction in mining activity and an overall drop in fleet utilisation due to heavy rains,” Tata Motors Ltd Executive Director Girish Wagh said.
On the outlook for CVs, the company said, “As we move forward, with the rains easing, increased infrastructure spending, and the arrival of the festive season boosting consumption, we anticipate demand to pick up gradually in Q3…”
Commodities are expected to continue to remain range-bound, the company said, adding that “overall, we expect a stronger H2 even though we remain watchful on the near-term domestic demand”.
(With Inputs from PTI)