Tata Motors Reports 51% Decline in Q4 Net Profit, Reaching Rs 8,556 Crore
Tata Motors has reported a significant 51% drop in its consolidated net profit for the fourth quarter ending March 31, 2025, amounting to Rs 8,556 crore, a stark contrast to Rs 17,528 crore in the same quarter last year. This decline is largely attributed to lower sales volumes and diminished operating leverage. Despite this downturn, the companyโs consolidated revenue from operations saw a slight increase, reaching Rs 1,19,503 crore compared to Rs 1,19,033 crore in the previous year. For the entire financial year 2024-25, Tata Motors recorded a consolidated net profit of Rs 28,149 crore, down from Rs 31,807 crore in the prior fiscal year, while annual revenue rose marginally to Rs 4,39,695 crore.
Financial Overview and Debt Status
In the latest financial report, Tata Motors highlighted its consolidated automotive business as now being debt-free, which has led to reduced interest costs. CFO P.B. Balaji expressed satisfaction with this development, emphasizing that it reflects the companyโs strong business fundamentals and the resilience of its team. He noted that despite facing significant uncertainties, Tata Motors remains committed to agility, growth, and future investments. The company is also on track to realize the full potential of its various business segments following shareholder approval for a demerger.
Jaguar Land Rover Performance and Trade Developments
Tata Motors’ luxury division, Jaguar Land Rover (JLR), reported a revenue of 7.7 billion pounds for the quarter, marking a 1.7% decrease year-on-year. However, the full-year revenue remained stable at 29 billion pounds. The company addressed global trade challenges, particularly the impact of new tariffs imposed by the US Administration. Following the announcement of a US-UK trade deal, which reduces tariffs on UK auto exports, JLR is optimistic about the future. The deal lowers tariffs from 27.5% to 10% for a quota of 100,000 vehicles, providing more certainty for the sector. JLR plans to invest 18 billion pounds over the next five years, focusing on transformation and efficiency.
Standalone Performance and Segment Insights
On a standalone basis, Tata Motors reported a net profit of Rs 1,382 crore for the fourth quarter, a decrease of 35% from Rs 2,126 crore in the same period last year. Revenue also fell to Rs 19,999 crore from Rs 20,260 crore. For the full financial year, standalone net profit dropped to Rs 5,452 crore from Rs 7,902 crore, with revenue declining to Rs 69,419 crore from Rs 73,303 crore. In the passenger vehicle segment, sales volumes decreased by 5.5% year-on-year, while revenue fell by 13.1%. Despite a modest 2% growth in passenger vehicle sales in India for FY25, the company noted a record total of over 4.3 million units sold, driven by the popularity of SUVs.
Commercial Vehicle Sales and Market Performance
In the commercial vehicle segment, Tata Motors experienced a 4.8% decline in domestic wholesale sales, totaling 99,600 units in the fourth quarter. However, exports surged by 29.4%, reaching 5,900 units. The revenue for the commercial vehicle segment for the full year was reported at Rs 75,100 crore. Executive Director Girish Wagh stated that FY25 ended positively for the commercial vehicle industry, with the company enhancing its market presence through innovative mobility solutions. Tata Motors anticipates continued growth in the commercial vehicle sector, supported by improving fleet utilization and stable macroeconomic conditions. The companyโs Board has recommended a final dividend of Rs 6 per share, pending shareholder approval, while its shares closed 1.76% lower at Rs 707.90 on the BSE.
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