Tata Motors on Wednesday reported a 22 per cent fall in consolidated net profit to Rs 5,578 crore for the third quarter ended December 2024, impacted by s decline in revenue from its passenger and commercial vehicles divisions.
The company had posted a consolidated net profit of Rs 7,145 crore in the same quarter last fiscal, Tata Motors said in a regulatory filing.
Its consolidated total revenue from operations stood at Rs 113,575 crore against Rs 110,577 crore in the year-ago period, it added.
The total expenses in the quarter were higher at Rs 107,627 crore compared to Rs 104,494 crore a year ago, the company said.
Tata Motors said its British arm Jaguar Land Rover (JLR) delivered a robust third quarter in FY25, with record revenue of 7.5 billion pounds, up 1.5 per cent compared to the year-ago period and posted a ninth successive profitable quarter.
"JLR has delivered a robust performance in the third quarter of our financial year, and further milestones in our reimagine strategy.
"Thanks to our people and partners, we achieved record revenue and our best EBIT margin in a decade and our electrification plans are progressing," JLR chief executive officer Adrian Mardell said.
JLR said that while mindful of the challenging economic backdrop, it is on track to achieve its profitability and cash flow targets in FY25.
Tata Passenger Vehicles Q3 revenue was Rs 12,400 crore, down 4.3 per cent and volumes were steady at 1.4 lakh units, about 1.1 per cent growth, Tata Motors said.
"In Q3 FY25, we recorded wholesales of 1.4 lakh units, 1.1 per cent growth over Q3 FY24 and retail sales growth of 6 per cent over Q3FY24.
"This has allowed us to sharply reduce our channel inventory ahead of Q4 FY25," Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility Managing Director Shailesh Chandra said.
On the road ahead for PVs, Tata Motors said in line with the growth rates seen in the first nine months, the PV industry is poised for moderate growth in FY25.
Segment shifts in the industry are likely to continue with strong growth in the SUV segment and continued traction for emission-friendly powertrains.
In the commercial vehicles (CV) segment, Tata Motors said Q3 revenue was down 8.4 per cent at Rs 18,400 crore and domestic wholesale CV volumes were 91,100 units, marginally lower compared to 91,900 units in Q3 FY24.
"In Q3 FY25, the HCV (heavy CV) segment witnessed robust sequential recovery, even as the YoY sales declined 9 per cent due to limited growth in end-use segments. The ILMCV (Intermediate Light Commercial Vehicles ) segment and passenger carrier segment witnessed 3 per cent and 30 per cent yoy growth whereas the SCV (small CV) segment experienced marginal decline due to ongoing financing challenges," Tata Motors executive director Girish Wagh said.
Looking ahead, the company said it expects CV demand to improve in Q4 FY25 across most segments.
The key aspects in 2025 will be the government's focus on infrastructure spend and growth in end-use segments, which will augur well for the commercial vehicles industry.
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