Tata Motors Passenger Vehicles (500570) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was ₹101,450 crore, down 3.5% year-over-year, with EBITDA margin at 11.4% and EBIT margin at 5.6%, reflecting supply issues at JLR and domestic demand softness.

• JLR Q2 revenue was £6.5 billion, down 5.6% year-over-year, with EBIT margin at 5.1%, impacted by supply constraints.

• Commercial Vehicles Q2 revenue fell 13.9% to ₹17,288 crore, with EBITDA margin at 10.8% (up 40 bps).

• Passenger Vehicles Q2 revenue dropped 3.9% to ₹11,700 crore, with EBITDA margin at 6.2%.

• Net auto debt at ₹22,000 crore, expected to reverse in H2; investment grade ratings achieved.

Financial highlights

• Q2 FY25 consolidated PBT (before exceptional items) was ₹5,768 crore, down from ₹6,200 crore year-over-year.

• JLR Q2 PBT (bei) was £398 million; H1 PBT (bei) up 24% year-over-year to £1.1 billion.

• Free cash flow (auto) was negative in Q2 due to seasonality and supply constraints; H1 FY25 FCF at (₹1,100 crore).

• JLR net debt at £1.2 billion, improved by £1.0 billion year-over-year.

• Debt-equity ratio improved to 0.96 as of September 30, 2024.

Outlook and guidance

• Cautious near-term domestic demand outlook, but H2 FY25 expected to improve with festive season and infrastructure investments.

• JLR maintains FY25 guidance: ~£30 billion revenue, EBIT margin ≥8.5%, and net cash positive.

• Commercial Vehicles anticipate demand recovery in Q3, led by easing rains and infrastructure spending.

• JLR wholesales expected to recover as supply challenges ease; business aims to become net debt free in H2.