Tata Motors Ltd (TML) has reported a net profit of ₹3,203 crore for the April-June 2023-24 quarter against a net loss of ₹5,007 crore in the same quarter last year on the back of all automotive verticals delivering strong performances.

Tata Motors' consolidated revenue surged 42% year-on-year to ₹1,02,200 crore, while EBITDA was at ₹14,700 crore (up 177% YoY) and EBIT margin came out to be 8.1%, up 880 bps, all showing a sharp improvement driven by JLR and commercial vehicle businesses, while the PV business was steady, Tata Motors informs via stock exchange filing.

Tata Motors' unit, Jaguar Land Rover's revenues improved by 57% to £6.9 billion on "strong wholesales and improved mix", resulting in EBIT margins of 8.6% (+1,300bps).

The commercial vehicle volumes, however, were lower by 15% over the prior year due to the transition to BS6 Phase 2. The revenue in the segment came out to be ₹17,000 crore, up 4.4%, while EBITDA was up at 9.4% (+390 bps) and EBIT at 6.5% (+370 bps).

Tata Motors' PV business remained steady, with 11.1% revenue growth and EBIT of 1% (+10bps) in Q1 FY24. “The Tata PV in Q1 FY24 saw robust demand, driven by new launches, especially in the SUV segment and EVs,” says the company.

Tata PV registered quarterly sales of 1,40,450 cars and SUVs in Q1 FY24 (up 8% over Q1 FY23). SUVs continued to spearhead sales contributing 64%, while sales of cars were buoyed by the multi-power train offerings of the Tiago and Altroz, adds the company.

“FY24 has begun on the right note with all automotive verticals delivering strong performances. The distinct strategy employed by each business is now delivering consistent results and making them structurally stronger,” says PB Balaji, group chief financial officer, Tata Motors.

Tata Motors says going forward, its PV unit expects the demand to remain steady, with the onset of the festive season, whilst the electrification trend is set to strengthen further. “We will continue to leverage our aspirational portfolio and alternate powertrains to maintain market leadership and drive EV penetration further,” says the company.

Tata Motors says in Q1 FY24, it recorded the highest-ever quarterly EV sales of 19,346 vehicles (up 105% over Q1 FY23). “The excellent market response to Tiago EV catalysed this growth while demand for other EVs remained consistent. Going forward, we expect a stable supply chain and robust demand with the onset of the festive season in the second half of Q2 FY24.”

In its outlook for the next quarters of the fiscal year, Tata Motors says it remains "optimistic" on the demand situation despite near-term uncertainties and expects a moderate inflationary environment to continue in the near term.

Follow us on Facebook, X, YouTube, Instagram and WhatsApp to never miss an update from Fortune India. To buy a copy, visit Amazon.