Tata Motors PV posts Q2 net profit of ₹76,120 crore on one-time gain from CV demerger, revenue drops 13.5% due to JLR cyberattack

Tata Motors Passenger Vehicles said on Friday that its second-quarter net profit stood at ₹76,120 crore, driven by a one-time gain from the demerger of its commercial vehicles unit. At the same time, its revenue for the quarter under review dropped 13.5% to ₹72,349 crore, as the cyberattack on JLR weighed on results.

JLR’s revenue took a 24.3% hit for the quarter ended September 30 to be at £4.9 billion, because of the cyberattack incident, which brought the fabled British carmaker to its knees, suspending production for over a month. Since then, JLR has taken decisive actions, including restarting the systems used to wholesale vehicles, supporting cash generation for JLR’s restart of its Global Parts Logistics Centre, and helping keep customers’ cars on the road. To support liquidity in its supply chain, JLR expedited a new £500 million financing solution to allow qualifying suppliers to receive cash at the point of production scheduling.

The company has also fast-tracked the introduction of a supplier financing scheme to provide qualifying JLR suppliers with cash upfront during the production restart phase. It also revealed that the production downtime was used to accelerate development and testing work for electrification at JLR facilities, such as underbody build validation and implementation of ADAS testing rig at Solihull, and EMA readiness at Halewood, as part of the commitment to invest £18 billion over five years from FY24.

For Tata Motors Passenger Vehicles, the quarterly revenue increased 15.6% to about ₹13,500 crore. In September and October, it secured the number two spot on the Vahan market share, leading to a sharp depletion of its inventory. During the quarter, the carmaker secured a 12.8% market share. The Vahan market share for EVs towards the end of the quarter was 41.4%. Its EV penetration was 17% and its CNG penetration was 28% in the second quarter.

During the quarter under review, Tata Motors Passenger Vehicles delivered one lakh cars between Navratri and Diwali. The company claims its Nexon SUV was the industry’s top-selling model in both September and October, with strong demand across powertrains. It also witnessed strong demand for Punch with more than 40,000 units across September and October. It also witnessed the highest-ever Harrier and Safari volumes on the back of newly launched Adventure X variants and strong response to Harrier.ev

Tata Motors Passenger Vehicles closed 1.62% lower on Friday at ₹391.60 apiece.