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Time of India
3 days ago
- Automotive
- Time of India
Tata Motors Demerger: Everything You Need to Know
Indian conglomerate Tata Group is planning to split its automotive business into two listed companies—one for passenger vehicles and another for commercial vehicles. This demerger is expected to boost employment and aligns with the company's long-term growth strategy. Here are the key highlights: How will segregation work? The Tata Motors Group will be divided into two separate listed entities: Tata Motors Passenger Vehicles (TMPV) – This will include the passenger vehicle segment, electric vehicles, and Jaguar Land Rover (JLR).TML Commercial Vehicles (TMLCV) – This entity will focus exclusively on commercial vehicles. What will be the impact? Tata Sons Chairman N. Chandrasekaran described the demerger as a strategic move to accelerate business performance. 'The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation—delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders,' he said in the company's 80th Integrated Annual Report. In FY25, a tough year for Tata Motors, commercial vehicle sales declined by 5.1 per cent year-on-year to 384,704 units, and passenger vehicle sales slipped 3 per cent to 556,367 units. When is it expected to happen? The business split is expected to be completed in the second half of 2025. According to the company's investor presentation earlier this year, the demerger is likely to be wrapped up by Q3 of FY26. Tata Motors' share division As per the Composite Scheme of Arrangement, shareholders of Tata Motors Ltd (TML) will receive- One share of TMLCV (face value ₹2) for every one fully paid-up share of ₹2 held in TML of the same class. Advisors for the Tata Motors Demerger The company has appointed key advisors to facilitate the demerger: PwC Business Consulting Services LLP – Share entitlement report providerSBI Capital Markets – Fairness opinion advisor for the share entitlement ratioAZB & Partners – Legal advisors to the transactionDeloitte Touche Tohmatsu India LLP – Tax advisors for the transaction
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Business Standard
5 days ago
- Automotive
- Business Standard
Tata Motors demerger to give shareholders long-term returns: Chandrasekaran
The proposed demerger of Tata Motors into two separate listed companies is expected to create strategic clarity and support long-term shareholder value, Tata Sons' chairman N Chandrasekaran said on Saturday. In the company's 80th Integrated Annual Report for FY25, Chandrasekaran shared that the separation process – creating distinct entities for commercial vehicles and passenger vehicles (which includes electric vehicles and Jaguar Land Rover) – is moving forward as expected. "The proposed demerger will bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering superior experiences for customers, rewarding careers for employees, and long-term returns for shareholders," he said. The demerger -- already approved by shareholders earlier this month -- is set to become effective in the second half of 2025. Shareholders will receive equivalent shares in both newly-listed companies. Looking ahead to FY26 Commenting on the company's future direction, Chandrasekaran said: "We step into FY26 with confidence in our strategy, strength in our execution, and belief in our people." He added that Tata Motors is keeping a close watch on global uncertainties, such as shifts in international trade and varying adoption rates of electric vehicles in different countries. "We remain vigilant to worldwide volatility, including the impact of changes in global trade conditions and the varying degrees of adoption of electric vehicles across different markets and evolving technologies, to accelerate our production plans while delivering value to our customers," he said. The company aims to maintain steady growth, improve customer satisfaction, and drive innovation in safer, cleaner, and more connected transport solutions. Embracing AI and automation Chandrasekaran noted that Tata Motors is also increasing the use of automation and artificial intelligence to boost operational agility and prepare its manufacturing systems for the future. "As we grow, we are also embedding greater automation and AI into our operations, enhancing agility and efficiency while shaping a future-ready manufacturing ecosystem," he said. He highlighted the significant opportunities AI and generative AI bring to every part of the business – from the design and manufacturing of vehicles to their performance on the road. "AI in vehicles is improving safety, increasing fuel efficiency, and providing drivers with enhanced connectivity features. This is the new context in which we craft our strategies for the future," Chandrasekaran added. Tata Motors demerger: Key details Under the plan, Tata Motors will divide its commercial vehicles business, including all associated assets, staff, and investments, into a new entity named TMLCV. At the same time, the existing passenger vehicles business (TMPV) will be merged back into Tata Motors Limited (TML), which remains listed. As per the agreed scheme, for every fully paid share of ₹2 held in TML, shareholders will get one fully paid share of ₹2 in TMLCV. This is referred to as the 'Entitlement Ratio'. Once the demerger is effective, both TMLCV and TML will be renamed, resulting in two independently listed companies. The demerger and merger will occur at the same time, on what is termed the 'Appointed Date'. The asset split between the two new companies is expected to be in a 60:40 ratio. Tata Motors has said that the restructuring would allow both businesses to pursue their distinct goals more effectively, strengthen responsibility within each unit, and improve value for shareholders. The company also clarified that there would be no negative effects on employees, customers, creditors, or partners.
News18
15-05-2025
- Automotive
- News18
Tata Motors Dividend 2025: Highest Ever Dividend In A Decade, Check AGM And Payment Dates
Last Updated: Tata Motors Dividend: Tata Motors Limited earlier announced several dividends. It announced a special dividend of Rs 3 per equity with ex-date on June 11, 2024. Tata Motors Final Dividend 2025: Tata Motors Limited (TML) has announced the final dividend of Rs 6 per equity share of Rs 2 each (300%) for the year ended March 31, 2025, along with its Q4 FY25 results. The Board of Directors has fixed Friday, June 20, 2025 as the date of the 80th Annual General Meeting ('AGM") of the Company. Tata Motors Dividend 2025 Payment Date The dividend, if declared at the AGM, will be paid to the eligible shareholders on or before June 24, 2025. Tata Motors Dividend History Tata Motors Limited earlier announced several dividends. It announced a special dividend of Rs 3 per equity with ex-date on June 11, 2024. Before that, it announced a final dividend of Rs 3 per equity for FY24. And a dividend of Rs 2 was announced for FY23. Tata Motors Demerger Tata Motors Limited's shareholders had approved the demerger proposal of separating the auto manufacturer into two listed entities – commercial vehicle and passenger vehicle. The resolution for the Composite Scheme of Arrangement was passed with the requisite majority, with a total of 2,730,875,858 votes polled. Out of these, 2,730,862,142 votes (99.9995%) were in favor, and 13,716 votes (0.0005%) were against. Shares entitlement ratio will be 1:1 as announced earlier. Tata Motors Limited's shareholders will receive one share of TMLCV of Rs 2 per share for every 1 share of TML being held. Tata Motors Share Price Tata Motors Limited's shares settled 1 per cent lower at Rs 700.20 apiece on Wednesday, against the previous day close at Rs 707.70 apiece. Disclaimer: The views and investment tips by experts in this report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions. Stay updated with all the latest news on the Stock Market, including market trends, Sensex and Nifty updates, top gainers and losers, and expert analysis. Get real-time insights, financial reports, and investment strategies—only on News18. First Published: May 15, 2025, 08:46 IST
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Business Standard
13-05-2025
- Automotive
- Business Standard
Tata Motors Q4 results: Net profit declines 51% to ₹8,556 cr, income flat
Tata Motors reported a consolidated net profit of ₹8,556 crore in the fourth quarter of financial year 2024-25, this marks a decline of 51.2 per cent from last year's Q4 result of ₹17,528 crore. The automaker has declared total income of ₹121,012 crore in the Q4 FY25, the company had reported ₹120,431 crore total income in the corresponding quarter of previous financial year. Q4 EBITDA came in at ₹16,700 crore, down 4.1 per cent, while EBIT rose to ₹11,500 crore, an YoY increase of ₹1,000 crore. The company's board of directors have recommended a final dividend of ₹6 per share subject to approval by the shareholders. The company anticipates the luxury automobile segment will navigate global economic challenges with relative ease, ''Tariffs and related geo-political actions are making the operating environment uncertain and challenging. The global premium luxury segment and Indian domestic markets are expected to weather this relatively better.'', the company said in an exchange filing. PB Balaji, Group Chief Financial Officer(CFO), Tata Motors said 'Despite external headwinds, Tata Motors sustained its strong performance in FY25, delivering its highest ever revenues and PBT(bei). On a consolidated basis the automotive business is now debt-free, reducing interest costs. In this environment of heightened uncertainty, we will remain agile, proactively drive our growth agenda, reduce our cash breakeven further whilst continuing to invest in our future. ''With the shareholders also approving the demerger, we are on track to realise the full potential of each of the businesses.', the CFO added. In FY25, Tata Motors Limited (TML) reported record revenues of ₹4,39,700 crore, with EBITDA at ₹57,600 crore. The company posted its highest-ever profit before tax (before exceptional items) at ₹34,300 crore, a rise of ₹5,000 crore over the previous year, and recorded a net profit of ₹28,100 crore. During the year, the TML Group became net auto cash positive, ending with a net cash balance of ₹1,000 crore. ''Lower depreciation and amortization at JLR, better CV profitability and savings in interest cost were partially offset by lower volumes and lower operating leverage.'', the company said.
News18
13-05-2025
- Automotive
- News18
Tata Motors Q4 Results: Net Profit Falls 51% To Rs 8,556 Cr, Rs 6 Final Dividend Declared
Last Updated: Tata Motors Q4: Tata Motors reported a 51.2 percent YoY drop in Q4 net profit to Rs 8,556 crore. The board recommended a final dividend of Rs 6.00 per share. Tata Motors Q4 Results: Tata Motors Ltd reported on Tuesday that its consolidated net profit for the quarter ended March 31, 2025 stood at Rs 8,556 crore, registering a sharp fall of 51.2 per cent Year-on-Year from Rs 17,528 crore in Q4 FY24. Meanwhile, the automaker's revenue growth remained flat to Rs 119,502 crore in Q4 FY25, against Rs 119,033 crore in Q4 FY24. Tata Motors Dividend 2025 Tata Motors Ltd board also recommended declaration of final dividend of Rs 6.00 per Equity Share of Rs 2 each (@ 300%) for the financial year ended March 31, 2025. The dividend, if declared at the AGM, will be paid to the eligible shareholders on or before June 24, 2025. Tata Motors Group Turns Net Cash Positive In FY25 For FY25, TML reported record revenues of Rs 439.7K Cr with EBITDA at Rs 57.6K Cr, highest ever PBT(bei) of Rs 34.3K Cr(+Rs 5.0K Cr over the previous year) and net profit of Rs 28.1K Cr. TML group turned net auto cash positive in FY25 with net cash balance of Rs 1.0K Cr. Lower depreciation and amortization at JLR, better CV profitability and savings in interest cost were partially offset by lower volumes and lower operating leverage
