Tata Motors Share Price Gains 3% Post Q2 FY25 Results on Optimism for H2 FY25

Tata Motors share price rose nearly 3% on Monday morning trades on November 11, 2024, emerging as one of the biggest gainers in the Nifty 50 despite broader market volatility. 

Tata Motors Stock Performance

Opening slightly lower at ₹801 on the NSE compared to the previous close of ₹800.95, Tata Motors shares dropped to a low of ₹792 before bouncing back to ₹829, resulting in an approximate 3% increase.

Q2 FY25 Financial Performance

In Q2 FY25 (July-September 2024), Tata Motors reported:

• Consolidated Net Profit: Declined 11% year-over-year (YoY) to ₹3,343 crore from ₹3,764 crore in Q2 FY24.
• EBITDA: Fell 16% YoY, dropping from ₹13,767 crore to ₹11,567 crore.
• EBITDA Margin: Reduced by 230 basis points to 11.4%, largely due to pressure on JLR margins amid challenging market conditions.

The weaker margins primarily stemmed from missed targets in JLR. Despite this, Tata Motors maintained its full-year guidance for FY25, aiming for around £30 billion in revenue, an EBIT margin of at least 8.5%, and positive net cash.

Factors Impacting Q2 Performance

Tata Motors noted that Q2 results were affected by temporary supply chain issues. Key figures in the commercial vehicle (CV) segment included:

• Domestic CV Wholesale Volumes: Reached 79,800 units, down 19.6% YoY, as infrastructure projects slowed, mining activity reduced, and overall fleet utilisation declined.

About Tata Motors 

Tata Motors Group is a major global car manufacturer and a part of the renowned Tata Group. It offers a wide range of vehicles, including cars, SUVs, trucks, buses, and defence vehicles. The company operates in several countries, including India, the UK, South Korea, South Africa, China, Brazil, Austria, and Slovakia. It has a strong global presence through subsidiaries, joint ventures, and associate companies, such as Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

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