Tata Motors reported a substantial 51 percent decline in its consolidated net profit for Q4 FY25, while its revenue was flat, and its luxury car division, Jaguar Land Rover (JLR), registered growth.
The net profit of the company during January to March 2025 was Rs 8,470 crore, a steep fall from Rs 17,407 crore in the same quarter last fiscal year, as per its regulatory filing.
Though the profit declined, Tata Motors' consolidated revenue from operations rose by a marginal 0.4 percent to Rs 1,19,503 crore, from Rs 1,19,033 crore in the same quarter of the previous year.
Total costs for the quarter came down to Rs 1,09,056 crore, from Rs 1,11,136 crore of the corresponding quarter of last year, allowing the company to control costs better.
Total revenues for the quarter came in at Rs 1,21,012 crore, a small growth over Rs 1,20,431 crore of last year's Q4.
Quarterly operating profit (EBITDA) was Rs 16,700 crore, down by 4.1 percent. Earnings before interest and tax (EBIT) at Rs 11,500 crore was up by Rs 1,000 crore compared to the previous year (YoY).
Tata Motors also announced a final dividend of Rs 6 per equity share for FY25, subject to approval at the company's forthcoming annual general meeting. If the dividend is approved, it will be paid on or before June 24.
One good note in the results was the performance of Jaguar Land Rover (JLR), which continued to display growth.
JLR sales rose 1.1 percent, led by robust demand for its high-margin SUVs in Europe and North America. Though growth has eased in China due to softer demand, JLR's robust performance elsewhere helped cushion the decline in Tata Motors' domestic sales, including its passenger vehicles, trucks, and buses. The JLR revenue rose 2.4 percent during the quarter, according to the exchange filing.
PB Balaji, Group CFO of Tata Motors, pointed out that the company recorded its highest-ever annual revenue and profit before tax (excluding exceptional items) for FY25.
He also pointed out that Tata Motors' automotive business is now debt-free on a consolidated basis, which has led to a decline in interest costs.
Looking forward, the company recognized possible worldwide challenges like tariffs and geopolitical tensions, which would impact the auto industry. It was, however, optimistic regarding the ability of the premium luxury and Indian domestic markets to overcome these obstacles.
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