Q1 2025 Tata Motors Ltd Earnings Call Transcript
Key Points
- Tata Motors Ltd (BOM:500570) reported a 5.7% growth in revenue for Q1 FY25, driven by favorable commodity prices and improved profitability across most business segments.
- Jaguar Land Rover (JLR) achieved a record Q1 revenue of GBP 7.27 billion, with a 5.4% increase year-over-year, and a strong PBT of GBP 693 million.
- The company reported positive cash flow in Q1, traditionally its weakest quarter, indicating strong financial management.
- Tata Motors Ltd (BOM:500570) is on track with its demerger and corporate restructuring plans, expected to be completed by July 1, 2025, which should streamline operations and improve focus.
- The company is making significant strides in electric mobility, with the launch of the Tata Curvv and the deployment of over 2,900 electric buses, reflecting its commitment to sustainability and innovation.
- Despite the revenue growth, Tata Motors Ltd (BOM:500570) experienced only a 2.5% increase in volumes, indicating potential challenges in market demand.
- Net debt increased marginally due to dividend payouts and seasonally negative cash flow, which could pose a risk if not managed effectively.
- The company faces supply chain disruptions, particularly in aluminum supply, which could impact production and financial performance in the coming quarters.
- The Passenger Vehicle (PV) segment saw a decline in revenues by 7% due to lower EV sales and a weaker mix in ICE vehicles, reflecting market challenges.
- High channel inventory levels in the PV segment, currently between 35 to 40 days, are above the targeted 30 days, indicating potential overstocking and pressure on sales.
Good day and welcome to Tata Motors Q1 FY25 earnings call. Today, with us are Mr. PB Balaji, Group CFO, Tata Motors; Mr. Girish Wagh, Executive Director, Tata Motors; Mr. Shailesh Chandra, MD, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited; Mr. GV Ramanan, Vice President, Finance, Tata Motors Limited; Mr. Dhiman Gupta, Vice President, Finance, TMPVL and TPEML; Mr. Adrian Mardell, CEO, Jaguar Land Rover; Mr. Richard Molyneux, CFO, Jaguar Land Rover, and we also have our colleagues from the Investor Relations team.
Today, we plan to walk you through the results presentation followed by Q&A.
(Operator Instructions)
I now hand over to Balaji sir to take over. Over to you, sir
Thank you, Anish. Welcome to the call. Standard safe harbor statement, we'll quickly run through the deck and then spend as much time as possible on the questions. It's been an intense action-packed quarter. The most
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