Mumbai, Aug 1 (IANS): Tata Motors on Thursday reported a 74 per cent increase in net profit to Rs 5,566 crore for the April-June quarter of the current financial year (2024-25), compared to the same period of the previous year, on the back of higher sales of its UK subsidiary Jaguar Land Rover.
The company had reported a net profit of Rs 3,203 crore in the April-June quarter last year.
Tata Motors' revenue from operations rose 5.7 per cent to Rs 1,07,316 crore during the first quarter from Rs 1,01,528 crore a year ago. Revenue of the company’s UK subsidiary JLR increased by 5.4 per cent during the quarter to 7.3 billion pounds driven by favourable volume, mix and material cost improvements, according to a company statement.
The share of JLR models increased to 68 per cent of the total revenue.
In the Indian market, Tata Motors commercial vehicle revenues grew 5.1 per cent year-on-year to Rs 17,800 crore, while EBIT margins improved 2.4 per cent to 8.9 per cent on the back of better realisations and material cost savings, the company said.
Passenger vehicle revenues fell 7.7 per cent, reflecting "challenging market conditions", but EBITDA at 5.8 per cent expanded 0.5 per cent, driven by material cost reductions, according to the company statement.
Tata Motors also said that the proposed demerger of the company into two separate listed entities is expected to conclude in 12 to 15 months.
"In furtherance to the announcement made on March 4, 2024, the Board of Directors of Tata Motors Limited (TML), today, has approved a Composite Scheme of Arrangement amongst TML, TML Commercial Vehicles Limited (TMLCV), Tata Motors Passenger Vehicles Limited (TMPV) and their respective shareholders," the company said.
Pursuant to the scheme, shareholders of TML will receive one share of TMLCV of face value Rs 2 fully paid up for every one fully paid-up share of Rs 2 held in TML of the same class, the company added.
Further, the merger of Tata Motors Finance with Tata Capital is also underway and expected to conclude over the course of the next 9 to 12 months, it said. Tata Motors shares are hovering at Rs 1,142.65 on the NSE.