Tata Motors Q4 net profit surges to ₹17,407 crore; to pay ₹6 dividend

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Motors reported a sharp jump in its fourth-quarter net profit at ₹17,407 crore on Friday, May 10, which was also aided by a tax credit of ₹8,159 crore. The Tata Group auto major posted a net profit of ₹5,400 crore in Q4FY23.

Tata Motor’s revenue for the January-March quarter of the financial year 2023–24 rose to ₹1.20 lakh crore, rising more than 14% from ₹1.05 lakh crore in Q3FY23.

Tata Motor’s EBITDA or earnings before interest, taxes, depreciation, and amortisation jumped to ₹17,035 crore, rising 33% on a year-on-year (YoY) basis, from ₹12,810 crore in Q3FY23. The EBITDA came in below a CNBC-TV18 poll, which estimated it at ₹17,712 crore.

The Nexon-maker’s margin for the quarter rose 210 basis points (bps) YoY to 14.2%. The margin also missed the CNBC-TV18 poll estimate of 14.7%.

What Tata Motors management said on financial results

Tata Motors management said it has delivered its highest-ever revenues, profits, and free cash flows and its India business is now debt-free.

“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,” PB Balaji, Group Chief Financial Officer, Tata Motors, said in the exchange filing.

Looking ahead, Tata Motors management sounded cautious, saying that the first half of the year could be relatively weaker but that it expects resilient demand in its premium luxury segment.

“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,” the filing added.

Tata Motors dividend amount and record date

Tata Motors also announced a dividend of ₹6 per share for its shareholders for FY24, which translates to 300% per equity share against a face value of ₹2.

“We would like to inform that the Board of Directors at its Meeting held today has recommended declaration of final dividend of ₹6.00 per Ordinary Share of ₹2 each (@ 300%) (₹3.00 normal dividend and ₹3.00 special dividend) and ₹ 6.20 per ‘A’ Ordinary Share of ₹2 each (@ 310%) (₹3.10 normal dividend and ₹3.10 special dividend) for the financial year ended March 31, 2024. The dividend, if declared at the AGM, shall be paid to the eligible shareholders on or before June 28, 2024,” the company informed in its exchange filing.

JLR Q4 results

Tata Motors’ premium luxury segment vertical Jaguar Land Rover’s (JLR) revenue surged 10.7% to £7,860 million in Q4FY24. JLR’s revenue in Q4FY23 stood at £7,102 million. Revenues for FY24 were £29.0 billion – JLR’s highest-ever full-year revenue and up 27% compared to the prior year, the filing said.

Commenting on JLR Q4 results, Adrian Mardell, CEO, said, “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.”

Tata Motors share price performance

Tata Motors share price settled at ₹1,047 on the NSE, up 1.6%. So far this year, Tata Motors stock price has surged more than 33%. The stock is the second best performer on the Nifty 50.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow