Tata Motors' net profit tanks 51 pc to Rs 8,470 crore in Q4

Mumbai, May 13 (IANS) Tata Motors on Tuesday reported a sharp 51 percent drop in its consolidated net profit for the fourth quarter (Q4) of FY25, even as revenue remained steady and its Jaguar Land Rover (JLR) business posted growth.

The company’s net profit stood at Rs 8,470 crore for the January-March 2025 period, down from Rs 17,407 crore reported in the same quarter last fiscal, according to a regulatory filing.

Despite the profit decline, Tata Motors' consolidated revenue from operations rose marginally by 0.4 percent to Rs 1,19,503 crore, compared to Rs 1,19,033 crore in the year-ago quarter.

Total expenses for the quarter were lower at Rs 1,09,056 crore, compared to Rs 1,11,136 crore in the corresponding period last financial year, helping the company control costs.

The company's total income for the March quarter was Rs 1,21,012 crore, slightly higher than Rs 1,20,431 crore in the year-ago period.

Operating profit (EBITDA) in Q4 was Rs 16,700 crore, showing a drop of 4.1 per cent.

However, earnings before interest and tax (EBIT) rose to Rs 11,500 crore, an increase of Rs 1,000 crore year-on-year (YoY).

Tata Motors also announced a final dividend of Rs 6 per equity share for FY25. The dividend is subject to approval at the company’s upcoming annual general meeting and, if approved, will be paid by or before June 24.

A bright spot in the results was the performance of its luxury vehicle arm, Jaguar Land Rover.

Sales volumes at JLR rose by 1.1 percent, driven by strong demand for its high-margin SUVs in North America and Europe.

Although the pace of growth has slowed due to weaker demand in China, the strong global performance helped offset weaker sales in Tata Motors’ domestic business, which includes passenger cars, trucks, and buses.

JLR's revenue for the quarter grew by 2.4 percent, as per the exchange filing.

PB Balaji, Group CFO of Tata Motors, said the company delivered its highest-ever annual revenue and profit before tax (before exceptional items) in FY25.

He added that Tata Motors' automotive business is now debt-free on a consolidated basis, which has helped reduce interest costs.

Looking ahead, the company acknowledged global uncertainties, such as tariffs and geopolitical tensions, which may impact the auto industry.

However, it expects the premium luxury and Indian domestic markets to be relatively resilient in navigating these challenges.

--IANS

pk/na