Tata Motors reported a significant increase in its Q3 FY24 results, with consolidated net profit more than doubling to Rs 7,025 crore, significantly exceeding analysts’ expectations. The revenue rose by 25% to Rs 1.11 lakh crore, showcasing strong operational performance across its segments.
The company’s performance in the Jaguar Land Rover (JLR) segment was particularly notable, with Q3 FY24 marking JLR’s highest quarterly profit since Q4 FY17. The profit before tax (PBT) for JLR was £627 million for Q3 FY24, and the segment saw a revenue of £7.4 billion, up 22% from the previous year. This growth was attributed to record quarterly Range Rover wholesales and significant interest in the Range Rover Electric, among other factors.
Following these robust results, Tata Motors’ shares surged over 7% to reach a record high of Rs 950. Top international brokerages, including Goldman Sachs, CLSA, and Macquarie, have expressed favorable views on Tata Motors, revising their target prices upwards. For instance, Goldman Sachs upgraded its price target to Rs 960, citing better-than-expected Range Rover realization and an enhanced Commercial Vehicle mix. CLSA set its target price at Rs 1,065, noting strength in the JLR segment and improved margins. Macquarie maintained an ‘Outperform’ rating, increasing its target price to Rs 1,028, acknowledging improved margins despite a rise in variable marketing expenses.
The automotive giant expects further improvement in Q4 FY24, buoyed by seasonality, new launches, and improving supplies at JLR. The company’s focus remains on sustaining its performance, delivering on its deleveraging plans, and meeting its profitability and cash flow targets, with an anticipated EBIT margin for FY24 of over 8%.
Disclaimer: The information provided here is for general informational purposes only and should not be considered as investment advice. It’s important to do your own research or consult with a financial advisor before making any investment decisions.
