Tata Motors Reports Strong Financial Results in Q3 FY24

Tata Motors, known for tough commercial vehicles, has shown impressive financial results for the third quarter of the fiscal year 2024. Let's look at the numbers and see what's fueling their success.

The company's revenue surged to Rs 20.1K crore, marking a robust growth of 19.2 per cent compared to the previous year. Moreover, the company's EBITDA and EBIT margins experienced significant increases of 270 basis points (bps), with PBT (bei) standing at Rs 1.7K crore.

Year-to-date Performance

Year-to-date, Tata Motors sustained its upward momentum with revenue hitting Rs 57.2K crore, reflecting a commendable 15.4 per cent growth. The company witnessed notable expansions in EBITDA and EBIT margins by 410 bps and 400 bps, respectively, showcasing consistent progress.

Market Share and Product Innovations

Tata Motors maintained its dominance in the domestic Vahan market, commanding a substantial 38.7 per cent share in Q3 FY24. Notably, the company's market share in the HGV+HMV segment climbed steadily to 50.7 per cent. Additionally, Tata Motors showcased advanced mobility solutions at EXCON 2023, emphasizing its commitment to safer, smarter, and greener transportation.

Tata Motors, a leading name in the automotive industry, has consistently pushed the boundaries of innovation and efficiency in its offerings.

Tata Motors launched new pickups like the Intra V70, Intra V20 Gold, and Ace HT to make small commercial vehicles more efficient and cost-effective. the company secured a significant order for 1,350 diesel bus chassis from the Uttar Pradesh State Road Transport Corporation.

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This accomplishment demonstrates Tata Motors' reliability and capability and also solidifies its position as a preferred partner for large-scale transportation initiatives. With these innovative offerings and strategic partnerships, Tata Motors continues to set new standards in the automotive industry, driving efficiency, reliability, and sustainability in commercial vehicle solutions.

Executive Insights

Girish Wagh, executive director at Tata Motors, attributed the pause in sales growth during Q3 FY24 to various factors such as the higher base effect, the impact of elections, and the post-festive seasonal slowdown in rural consumption. However, he noted healthy growth in certain segments and emphasized the company's focus on profitability through pricing discipline and product innovation.

Looking ahead, Tata Motors anticipates a demand boost in the fourth quarter of FY24, driven by government infrastructure projects and a promising economic outlook. The company remains committed to expanding its market share in the Vahan segment and introducing innovations tailored to specific market needs. Initiatives to regain market share in SCVPUs are underway, with a continued emphasis on profitability.