Tata Motors (TMCV) Q4 23/24 earnings summary

Executive summary

• FY24 delivered record consolidated revenue, profits and auto free cash flow; India automotive operations were debt-free, with consolidated net automotive debt targeted to reach zero in FY25.

• All automotive verticals improved operationally; JLR led consolidated revenue growth while CV and PV delivered record annual revenue and stronger profitability.

Financial highlights

• Consolidated revenue rose 26.6% YoY to ₹437,928 crore; EBITDA was ₹62,798 crore and EBITDA margin 14.3%, up 360 bps YoY.

• EBIT margin reached 8.3%, up 470 bps; PBT before exceptional items was ₹28,932 crore and PAT ₹31,807 crore, versus ₹2,690 crore in FY23.

• Auto free cash flow was ₹26,925 crore versus ₹7,840 crore; net automotive debt fell ₹27,665 crore to ₹16,022 crore.

• Consolidated basic EPS was ₹81.95 per Ordinary share and ₹82.05 per A Ordinary share, versus ₹6.29 and ₹6.39, respectively, in FY23.

Outlook and guidance

• FY25 target: achieve net automotive debt-free status on a consolidated basis; JLR expects net debt zero during FY25 despite higher investment spending.

• JLR expects FY25 EBIT margin around FY24’s level and investment spending of £3.5 billion; premium-luxury demand is expected to remain resilient.

• CV demand is expected to improve from H2 FY25; outlook remains cautiously optimistic, with continued focus on EBITDA and net cash.

• PV aims for strong FY25 growth from new launches and a multi-powertrain strategy, while anticipating industry demand moderation; EV growth and penetration are expected to increase.