Tata Motors has announced a remarkable 45% year-on-year surge in its net profit for the fourth quarter of the fiscal year 2023-24, reaching Rs 17,529 crore compared to Rs 12,033 crore in the corresponding period of the previous year. This impressive growth trajectory was underpinned by a robust order book from Jaguar Land Rover (JLR) and resilient domestic demand.
The fourth-quarter revenue also witnessed a substantial uptick, climbing to Rs 119,986 crore, marking a 13.3% year-on-year increase. Tata Motors, as a group, achieved its highest-ever revenue and profit, propelled by strong performances across its various business segments. Notably, Tata Motors’ India business achieved a significant milestone by becoming net debt-free, with net automotive debt further reduced to Rs 16,000 crore.
Looking ahead, the management of Tata Motors remains cautiously optimistic about domestic demand for the upcoming fiscal year, anticipating a relatively weaker first half while expressing confidence in the resilience of the premium luxury segment. PB Balaji, Group Chief Financial Officer of Tata Motors, reiterated the company’s commitment to sustaining this momentum, stating, “The India business is now debt-free, and we are on track to become net automotive debt-free on a consolidated basis in FY25.” Tata Motors has outlined ambitious expansion plans in the electric vehicle (EV) space, aiming to capitalize on emerging trends and consumer preferences.
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles (TMPV) and Tata Power Electric Mobility (TPEM), highlighted the company’s stellar performance in FY24, marked by record-breaking sales volumes and a significant increase in the penetration of environmentally friendly powertrains.
Chandra remarked, “Passenger vehicle sales in India achieved a historic milestone in FY24, with Tata Motors recording its third consecutive year of highest sales volumes. Our multi-powertrain approach and sharp focus on green technologies have propelled the penetration of CNG and electric vehicles, contributing to our highest-ever turnover and profits.”
In a move to reward its shareholders for the stellar performance, the Board of Directors of Tata Motors has recommended a final dividend of Rs 3 per Ordinary Share and Rs 3.10 per A Ordinary Share, along with a special dividend of Rs 3 per Ordinary Share and Rs 3.10 per A Ordinary Share, subject to approval by the shareholders.
With a strong financial performance, ambitious growth plans, and a commitment to sustainability, Tata Motors is poised to maintain its position as a leader in the global automotive industry while driving innovation and value for its stakeholders.
