MUMBAI: Tata Motors recorded an about 10% decline in its Q2 FY25 profit to Rs 3,450 crore, which was much lower than the Street’s estimates of Rs 5,038 crore. Revenue also decreased by 3% to a little over Rs 1 lakh crore. Operating profit, a measure of underlying business performance, also dropped by about 20% to Rs 5,799 crore. Expenses fell by 3% to Rs 97,330 crore.
Operating profit of its UK unit Jaguar Land Rover declined by about 16% to Rs 4,521 crore. The JLR business was impacted by aluminium supply constraints and a hold placed on 6,029 vehicles for quality control checks. Operating profit of non-JLR vehicles such as Tata and other brands of passenger cars fell by about 90% to Rs 25 crore in Q2 FY25. This unit was affected by slow consumer demand and seasonal factors.
The operating profit of Tata commercial vehicles declined by 16% to Rs 1,354 crore. The commercial vehicle business was impacted by a slowdown in infrastructure project execution, reduction in mining activity, and an overall drop in fleet utilisation due to heavy rains.
Tata Motors’ management is hopeful for the festive season, substantial investments in infrastructure and an easing of supply challenges to improve its performance.