Tata Motors says India’s business is currently debt-free, and the firm is on track to become net automotive debt-free in FY25.
Record-Breaking Performance:
Tata Motors has announced an impressive 222 percent growth in its consolidated net profit, reaching Rs 17,407.18 crore.
This remarkable achievement is attributed to improved operating leverage, favourable commodity prices, and strong volume growth across various segments.
Revenue Growth:
The company’s revenue from operations also witnessed a significant increase of 13 percent, reaching Rs 119,986.31 crore for the quarter under review.
This growth is compared to Rs 105,932.35 crore recorded a year ago, reflecting the company’s robust performance in revenue generation.
Strategic Financial Position:
P.B. Balaji, Group Chief Financial Officer of Tata Motors, expressed satisfaction with the FY24 results, highlighting the company’s highest-ever revenues, profits, and free cash flows.
He also emphasized the achievement of becoming debt-free in the India business, with plans to achieve net automotive debt-free status on a consolidated basis in FY25.
Exceeding Expectations:
Analysts were pleasantly surprised by Tata Motors’ performance, as the company’s results surpassed their expectations.
The average estimates of six broking firms predicted a profit climb to Rs 7,084 crore in the fiscal fourth quarter, representing a 33 percent increase from the previous fiscal. Similarly, revenue from operations was forecasted to surge by 15 percent to Rs 1,22,008 crore.
Dividend Announcement:
The automaker’s board has recommended a final dividend of Rs 6 per Ordinary Share and Rs 6.20 per ‘A’ Ordinary Share for the financial year ended March 31, 2024.
This dividend announcement reflects the company’s commitment to rewarding its shareholders amidst its outstanding financial performance.
Positive Sales Growth:
Tata Motors reported a significant increase in total wholesales, rising by 11.5 percent year-on-year to 77,521 units in April 2024.
Domestic dispatches also saw a notable growth of 12 percent, reaching 76,399 units compared to April 2023. These positive sales figures underscore the company’s strong market presence and consumer demand for its products.
Conclusion:
Tata Motors’ remarkable financial performance, driven by revenue growth, strategic financial management, and positive sales figures, reinforces its position as a leading player in the automotive industry.
With a focus on sustaining this strong performance in the coming years, the company continues to demonstrate its resilience and commitment to delivering value to its stakeholders.
