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Tata Motors CV Profit Plummets, But Earnings Rise
29 Jan
Summary
- Tata CV net profit fell 48% to ₹705 crore due to exceptional charges.
- EBITDA increased by 41.8% to ₹2,883 crore, with margin expansion.
- Domestic CV market share grew to 35.5% in the third quarter.
Tata Motors Limited's commercial vehicles (CV) arm reported a challenging December quarter, with net profit declining by 48% to ₹705 crore compared to the previous year. This decrease was primarily driven by exceptional charges totaling approximately ₹1,600 crore. These charges included impacts from new labor codes, demerger-related expenses, and acquisition costs.
Despite the hit to profitability, the CV business showcased robust operational performance. EBITDA surged by 41.8% year-on-year to ₹2,883 crore, leading to a notable expansion in EBITDA margin to 13.2%. Revenue from operations saw a modest increase of 1.8% to ₹21,847 crore.
Operationally, CV wholesales rose by 20% year-on-year, with domestic volumes up 18% and exports experiencing a significant jump of 70%. The company's domestic CV market share improved to 35.5% during the quarter. Management attributed the performance to disciplined execution and increased demand supported by festive seasons and infrastructure spending.
