In a remarkable turn of events, Tata Motors’ shares surged to a record high of Rs 943.75, marking a substantial 7.39 percent increase. The driving force behind this unprecedented rise was the company’s stellar performance in the December quarter (Q3FY24) earnings, coupled with record-breaking sales in January.
Record Profits and Sales Surge
Tata Motors reported a consolidated net profit of Rs 7,025 crore in the December quarter, a staggering 100 percent increase compared to the same period the previous year. This impressive result surpassed market expectations and highlighted the resilience of the automotive giant in challenging economic conditions.
The crown jewel in Tata Motors’ success was Jaguar Land Rover (JLR), its luxury car unit, which witnessed a remarkable 27 percent surge in sales during the October to December period. JLR’s high-end vehicles played a pivotal role in propelling Tata Motors’ revenue, contributing to about two-thirds of the total.
Financial Highlights
Tata Motors’ revenue soared by 25 percent to reach Rs 1.11 lakh crore, exceeding analysts’ estimates. The company also demonstrated improved margins on Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), reaching 14.3 percent compared to 11.1 percent in the corresponding period last year.
Despite challenges posed by sluggish demand in the domestic market, Tata Motors achieved modest growth with a 3 percent increase in total sales volumes. The international market, particularly JLR, emerged as a cornerstone of success for the company.
Confidence in Future Growth
Looking ahead, Tata Motors expressed confidence in further elevating its performance in the fourth quarter. The company pointed to factors such as seasonality, new product launches, and improved supplies at JLR as key drivers for future growth.
As of 9:31 am, Tata Motors shares continued to trade 6.80 percent higher at Rs 938.45 per share, showcasing the sustained investor confidence in the company’s trajectory.
