Tata Motors Drives Ahead: Q3 FY24 Insights

Owing to pricing discipline and a richer mix, profitability continued to improve and Tata Motors achieved 11.1% EBITDA margins in Q3 FY24. The company plans on continuing to drive the business with strong customer connections.

Tata Motors, synonymous with robust commercial vehicles, has once again showcased its strong market leadership with impressive financial results for the third quarter of the fiscal year 2024. Let us break down the numbers and unveil the driving force behind their success.

Financial Highlights

In Q3 FY24, Tata Motors revved up its revenue to Rs 20.1K crore, marking a solid 19.2 percent growth compared to the previous year. The company's EBITDA soared to 11.1 percent, witnessing a significant increase of 270 bps, while EBIT hit 8.6 percent, also climbing 270 bps. PBT (bei) stood at Rs 1.7K crore, reflecting a robust performance.

Year-to-date, Tata Motors maintained its upward trajectory with revenue of Rs 57.2K crore, showing a commendable 15.4 percent growth. EBITDA and EBIT margins saw impressive expansions of 410 bps and 400 bps, respectively, demonstrating sustained progress.

Related Link: Ashok Leyland Drives Forward with Record Q3 Performance

Market Share and Product Innovations

Tata Motors continued to dominate the domestic Vahan market, commanding a substantial 38.7 percent share in Q3 FY24. Notably, the HGV+HMV market share climbed steadily, reaching 50.7 percent. The unveiling of advanced mobility solutions at EXCON 2023 underscored Tata Motors' commitment to safer, smarter, and greener transportation. 

Tata Motors also introduced the Intra V70 pickup, Intra V20 Gold pickup, and Ace HT aimed to enhance the efficiency of small commercial vehicles while reducing ownership costs. Moreover, securing a significant order for 1,350 diesel bus chassis from Uttar Pradesh State Road Transport Corporation further solidified Tata Motors' position in the market.

Executive Insights

Girish Wagh, executive director, Tata Motors, said: “The CV industry witnessed a pause in sales growth in Q3FY24 on account of the higher base effect, impact of elections held across five states, and the post-festive seasonal slowdown in rural consumption. While M&HCV and passenger commercial segments witnessed healthy growth, shrinking IL&CV and SCVPU sales pulled down overall volumes during the quarter.”

“Owing to pricing discipline and richer mix, profitability continued to improve and we achieved 11.1 percent EBITDA margins in Q3 FY24. We will continue to drive the business with strong customer connections, proactive demand-pull initiatives and innovations in product and service. By improving customer affinity for our brands, we intend to further step up registration market shares sustainably, and improve profitability,” he added. 

Future Initiatives

Looking ahead, Tata Motors anticipates a boost in demand for the fourth quarter of FY24, driven by government infrastructure projects and a promising economic outlook. The company remains focused on expanding its Vahan share and advancing innovation to cater to specific market needs. Initiatives to regain market share in SCVPUs are underway, while profitability remains a paramount focus.

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