Tata Motors' Q4 FY25 net profit shrinks 51% to ₹8,470 crore
Tata Motors reported a 51 per cent drop in its consolidated net profit, amounting to ₹8,470 crore, for the quarter ending March 2025, while revenue remained flat at ₹1.19 lakh crore.
Its luxury segment, Jaguar Land Rover, reported a slight decrease in revenue, but profitability increased, driven by higher volumes and reduced depreciation. Its commercial vehicle volumes experienced a dip domestically but exports rose, with optimised mix and realisations boosting profits.
Passenger vehicle volumes and revenues declined, though SUVs, CNG, and EVs are expected to drive future growth; the automotive business is now debt-free, and free cash flow stood at ₹22,400 crore.
The Board of Directors has proposed a final dividend of ₹6 per share, which is contingent upon the approval of the shareholders.
The company's EBITDA for the quarter experienced a 4 per cent decrease Y-o-Y, settling at ₹16,700 crore, while the EBIT reached ₹11,500 crore. During the same quarter, EBITDA margins experienced a decrease of 60 basis points, falling to 14 per cent.
JLR sales
Jaguar Land Rover's revenue for the quarter was £7.7 billion, marking a 1.7 per cent decrease compared to the previous year. However, the full-year revenue remained flat Y-o-Y at £29 billion.
The Profit Before Tax (PBT) for Q4FY25 stood at £875 million, showing an increase from £661 million in Q4 FY24. The company attributed this increase in profitability to higher sales volumes and a reduction in depreciation and amortization (D&A), which was partially offset by an increase in Variable Marketing Expense (VME).
The EBIT margin for the quarter saw an expansion of 150 basis points Y-o-Y, reaching 10.7per cent.
Wholesales for the Defender model reached a new record in FY25, totaling 115,404 units. Range Rover Sport wholesales for the year experienced a 20per cent increase compared to the previous year.
"JLR has ended the year with strong annual and quarterly earnings, including delivering our tenth consecutive profitable quarter and our net debt zero target. We have achieved record sales of Defender and are preparing to launch the wonderful Range Rover Electric," said Adrian Mardell, JLR CEO.
JLR stated that it had implemented a series of short-term measures to mitigate the immediate effects of trade tariffs imposed by the US on the global automotive sector.
According to JLR, the US-UK trade agreement has led to a reduction in US trade tariffs on UK auto exports to the US, decreasing them from 27.5per centto 10per centwithin a quota of 100,000 vehicles.
Looking ahead, JLR anticipates that investment spending will remain at £18 billion over a five-year period, which will be funded through operational cash flows.
CV sales
In the commercial vehicles segment, domestic wholesale volumes for Q4FY25 amounted to 99,600 units, reflecting a 5 per cent decrease compared to the previous year. Exports reached 5,900 units, showing a 29.4 per cent increase Y-o-Y.
Revenues for the segment experienced a marginal decrease of 0.5 per cent Y-o-Y, amounting to ₹21,500 crore, primarily due to lower volumes.
Girish Wagh, Executive Director Tata Motors, said ' Our focus on profitable growth enabled the CV business to deliver annual revenues of ₹ 75.1K cr and PBT (bei) of ₹6.6K cr and strong ROCE of 37.7per cent in FY25. Going forward, we remain committed to driving sustainable and profitable growth while improving Vahan market share across all business segments.'
PV sales
In the passenger vehicles segment, volumes for the quarter reached 147,000 units, marking a 5 per cent decrease compared to the previous year. Revenues in Q4 also declined by 13 per cent Y-o-Y, amounting to ₹12,500 crore.
The EBIT margin for the segment contracted by 130 basis points, falling to 1.6 per cent, which was impacted by lower volumes and realizations, partially offset by cost savings and incentives.
Looking ahead, the company anticipates that industry momentum will be driven by ongoing innovation that aligns with evolving customer preferences.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
Tata Motors, JLR flag EV supply chain as a separate business risk. They don't name China, but its imprint is all over.
New Delhi: Tata Motors Ltd and Jaguar Land Rover have separately highlighted risks to their electric vehicle business for the first time ever, including potential production delays and shortages, likely as a result of China's stranglehold over the EV supply chain. Introducing a new element in their annual report's principle risks segment, titled 'electrification transition', Mumbai-based Tata Motors and its UK-based subsidiary JLR have both underscored the threat of financial losses if the transition to clean technology is not carefully managed. 'Unmanaged supply chain issues can lead to production delays and shortages," the companies said in their annual reports for 2024-25 without mentioning any specific potential trigger. No other homegrown automaker has mentioned electric transition as a separate business risk in their annual report. The disclosures in Tata Motors's and JLR's annual reports come as automakers globally are grappling with China's export restrictions on rare earth magnets. India's auto sector has conveyed to the Union government that production cuts could begin as early as this month if China doesn't resume exports of rare earth magnets, which are used to make electric motors and other parts for EVs. They also flagged that while China has resumed exports of rare earth magnets to foreign companies, applications by Indian automakers remain stuck. As per several estimates, China controls about 80% of the global lithium-ion battery market and about 90% of the global supply chain for rare earth magnets. 'There is a need for the magnets for both EVs and ICE (internal combustion engine) vehicles," Shailesh Chandra, managing director at Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, told Mint in an interview. 'Different OEMs (original equipment manufacturers, or carmakers) are in different positions with respect to the stock of the magnets." For the long-term, Tata Motors and JLR are investing towards increasing their capacity to manufacture key components. 'To support this electrification, Tata Group's Agratas is to construct the UK's largest battery cell facility in Somerset, which will provide high-performance battery cells for our new electric models," Jaguar Land Rover noted in its annual report. 'Additionally, we are making significant continued investment in upgrading our core facilities and supply chain for electrification." Agratas Energy Storage Solutions Pvt. Ltd is the Tata Group's battery business, with Tata Motors and JLR as its anchor customers. Also read | China's restriction on rare earth magnets repel Indian EV players China's shadow Tata Motors has raised concerns even earlier about its electric vehicle business's direction in international markets, but that was due to a demand slowdown in Europe and the US. 'Given the uncertainty around the pace of EV adoption in key markets, the company may need to extend the life of its ICE platforms beyond the originally planned timeline. It may also consider launching new ICE variants in the future," analysts at Motilal Oswal wrote in a 11 March note. In its latest annual report, Tata Motors has also highlighted its efforts to localise the battery supply chain that is currently dominated by China. Tata Motors's lead in the electric vehicles segment is being aggressively challenged by MG Motor India, Mahindra & Mahindra Ltd, and Hyundai Motor India Ltd, with its domestic EV market share dropping to 55.4% in 2024-25 from 73.1% in FY24 and 84% in FY23. Experts believe the looming shadow of China on the EV supply chain is an identified risk factor for automobile companies. 'Whether it's batteries or magnets, China has established a dominant lead in the supply chain, which is bound to be a risk for domestic and global OEMs," said Abhishek Saxena, former public policy expert at government think-tank Niti Aayog. 'The current magnet crisis shows that supply concentration can have a business impact." Also read | Indian auto stuck in queue as China clears rare earth magnets for others After US President Donald Trump in April announced reciprocal tariffs on countries across the world, China began restricting the export of rare earth magnets. The Chinese government has started asking for end-user certificates declaring that the products made using its rare earth magnets will not be used for defence purposes. But, as per automakers, the process to obtain the certificates is long and arduous, requiring multiple layers of approvals from provincial governments in China and the Chinese commerce ministry. 'Stocks are fast depleting. So far, 30 applications have been submitted to China, but none has received final approval. The Chinese government has said that final approvals will take about 45 days," Rakesh Sharma, executive director at Bajaj Auto Ltd, said during a post-earnings media call on 29 May. Bajaj Auto has warned about severe production cuts starting July if the rare earth magnet issue isn't resolved.
Hindustan Times
2 hours ago
- Hindustan Times
India-US trade negotiations hit top gear, American delegation extends Delhi stay
New Delhi: Intensive trade negotiations between India and the US gained momentum, with an American delegation extending its stay in New Delhi until next week as both sides work to finalise an early portion of their bilateral trade agreement, people aware of the matter said on Friday. The American negotiation team led by assistant US Trade Representative Brendan Lynch arrived in India on Wednesday and began face-to-face bilateral talks that stretched late into Thursday, according to one person familiar with the discussions. 'The discussions are positive and progressive, and moving in the right direction,' said one person, describing Friday's conversations as 'continuing in a similar manner.' Originally expected to wrap up their visit after Friday, the American team will now remain in Delhi until Tuesday (June 10), this person added, signalling the hectic nature of the negotiations as both countries race to beat a crucial July 9 deadline. The focus is on achieving common ground for greater market access by eliminating tariffs and non-tariff barriers before July 9, when an additional 16% reciprocal tariff on Indian goods is set to take effect unless an interim deal is reached, people aware of the matter have previously explained. 'During the visit of the US delegation, both sides are engaged in detailed discussions on various aspects of the proposed BTA in order to forge a pathway to realise the vision for bilateral trade and economic ties as laid down by the leaders of the two countries during their meeting in February 2025,' a second person said. 'An early harvest deal—mostly related to tariff reductions on goods and elimination of non-tariff barriers—could be finalised during the ongoing New Delhi round, provided both sides reach agreement on all matters involving the early deal,' said the person quoted in the first instance. Speaking from Brescia, Italy, on Thursday, Goyal told PTI that negotiations were progressing well and more US officials would reach New Delhi on Friday to join discussions with their Indian counterparts. The negotiations are complex and taking time because of the other American tariffs on specific Indian goods such as steel, aluminium, automobiles and auto components, the first person quoted above added. 'As per the leaders' statement, the deal between the two sovereigns must be mutually beneficial, hence all trade-related issues have to be addressed accordingly,' he said. The tariff disputes have created parallel tracks in India-US relations, with New Delhi maintaining World Trade Organisation complaints against American measures while simultaneously pursuing bilateral solutions through the BTA framework.
Mint
3 hours ago
- Mint
Xi Bets Trump Detente Leads to Future Wins on Chips, Tariffs
In the early hours of Wednesday, Donald Trump declared that Xi Jinping was 'VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' Some 36 hours later, the US leader said he got what he wanted: A commitment to restore the flow of rare earth magnets. It's less clear what Xi got in return, apart from putting a lid on further punitive US measures. One of the few clear takeaways appeared to be an assurance for the US to welcome Chinese students, a major issue in China but also not one that would explain why Xi got on the phone after making Trump wait for months. By taking the call now, Xi appears to be betting that a reset in ties will lead to tangible wins in the weeks and months ahead, including tariff reductions, an easing of export controls and a generally more civil tone. The biggest sign of that was another round of talks — planned for Monday in London — that will now include US Commerce Secretary Howard Lutnick, who's in charge of curbs on the sale of advanced technology to China. Whether Xi will get any of that, however, now hinges on a famously erratic Trump administration in which views toward China differ drastically. 'This call provides tactical de-escalation for US-China relations,' said Sun Chenghao, a fellow at the Center for International Security and Strategy at Tsinghua University in Beijing. 'However, China's core demands — equal sanction relief, reciprocal enforcement mechanisms, and an end to tech containment — remain critical for sustainable agreements,' he added. 'Without substantive US adjustments in follow-up talks and policies, the consensus may not translate into long-term stability.' Investors were skeptical that relations between the world's biggest economies were finally on track, with China's CSI 300 Index little changed on Friday. While the two leaders spoke just days before Trump's inauguration, Xi had kept his US counterpart waiting for a phone call ever since as tensions rapidly escalated, with tariffs climbing well beyond 100% before the two sides agreed to lower them in Geneva last month. In recent days, Trump had looked like the more desperate of the two, seen by his repeated requests for a call capped off by his social media post at 2:17 a.m. on Wednesday. The call next day finally ended the longest post-inauguration silence between American and Chinese leaders in more than 20 years. 'We're in very good shape with China and the trade deal,' Trump told reporters on Thursday after the 90-minute conversation. 'I would say we have a deal, and we're going to just make sure that everybody understands what the deal is,' he added. The big immediate problem for the US was a lack of rare earth magnets essential for American electric vehicles and defense systems. After the Geneva meeting, the US side believed it had secured the flow of these materials, only to be disappointed when China kept its export licensing system in place, saying that exporters to the US still needed to apply just like everyone else. China, in turn, felt betrayed by a fresh wave of US restrictions on AI chips from Huawei Technologies Co., software for designing chips, plane engines and visas for upwards of 280,000 Chinese students. 'Both sides felt that the agreement in Geneva was being violated,' said Gerard DiPippo, associate director at the RAND China Research Center. From the White House's perspective, he said, 'China committed to send the magnets.' Although Xi flexed his muscles with the rare earths restrictions, he also has reasons to come to the table. China's economy is expected to slow sharply in the second quarter and come under pressure into the second half of the year, according to Morgan Stanley economists led by Robin Xing. 'Now the China pendulum is swinging back from 'political principle' of standing firm against the US to 'pragmatism' in support of a still fragile economy,' said Han Lin, China country director at The Asia Group. 'In other words, Beijing wants to de-escalate, and as long as there is a face-saving path for Xi to do so, now is better than never.' Xi can point to several things that indicate more is coming. The addition of Lutnick in upcoming trade talks, led in Geneva by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, signals Trump may be willing to consider reversing some of the technology curbs that threaten to hobble China's long-term growth ambitions. Xi's statement after the call also made clear he expects the US to 'remove the negative measures taken against China,' which could include warnings against the use of Huawei's Ascend chips and restriction on the sale of chip design software to China. The two leaders also exchanged invitations to visit each other's country, events that will build momentum toward stabilizing the relationship with agreements on thorny issues spanning trade, export controls and people-to-people exchanges. Trump said their wives would also come along, adding to the positive optics. It's significant that Trump agreed to visit China first, according to Bert Hofman, professor at the East Asian Institute at the National University Singapore and former World Bank country director for China. 'Xi probably realized that a call would be in the Chinese interest given the eagerness of Mr. Trump to have one,' he said. 'This will accelerate talks and hopefully extend the truce beyond August,' he added, as the tariff reductions agreed in Geneva will expire in early September. But some analysts advised against being overly optimistic, pointing out the lack of details on key trade matters. 'There doesn't seem to be a deeper agreement that would prevent either side from taking additional negative actions, even as talks proceed,' said Kurt Tong, a former US consul general in Hong Kong and a partner at The Asia Group. That fragility is compounded by Trump's transactional approach to foreign policy and ties with China in particular. In January 2020, when Trump signed a Phase-One trade deal with Beijing, he said the relationship between the countries was 'the best it's ever been' before it quickly unraveled following the spread of Covid-19 around the globe. 'It would be unwise to bet that Trump has a vision for further negotiations that he won't abandon suddenly later on,' said Graham Webster, who leads the DigiChina project at Stanford University. Another area where Xi could see an early win is on the issue of fentanyl. Any deal to cooperate in blocking the flow of the drug to the US could immediately bring down American tariffs on Chinese imports by 20 percentage points. While the call helped to stem the negative trajectory of the relationship, the next two weeks will be crucial to confirm whether the truce will last, according to Wu Xinbo, a professor at Fudan University in Shanghai. He said China expects to see more progress on tariffs and US tech curbs. 'The call in itself is not a reward,' Wu said. 'What's important is what will come out of the call.' This article was generated from an automated news agency feed without modifications to text.
