rewrite this title and make it good for SEOTata Motors Q3FY25 Results Preview: Net profit likely to slip 10%, margins seen declining on higher discounts

Tata Motors- the passenger car and utility vehicle major is slated to report its October-December quarter earnings on January 29, 2025 (Wednesday). For the December quarter, Zee Business analysts expect the company’s consolidated net profit to slip 10 per cent on-year to Rs 6,300 crore. The company’s profit during the corresponding period of the previous fiscal year was recorded at Rs 7,025 crore. 

Revenue, however, is expected to edge higher by 3.7 per cent year-on-year (YoY) and come in at Rs 1,14,695 crore in comparison to Rs 1,10,577 crore in the same quarter of the previous year.

Furthermore, adjusted EBITDA at the company is also seen slipping by 4.8 per cent as the automobile major is likely to report Rs 14,600 crore in adjusted EBITDA. The same in the corresponding period a year-ago was at Rs 15,333 crore.

Adjusted EBITDA removes one-time, irregular as well as non-recurring items that may distort EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization. Also, the EBITDA margin is estimated to decline from 13.9 per cent reported in the December quarter of the previous year to 12.7 per cent, marking a 120 basis points decline.

In the year-ago period, Tata Motors recorded a forex gain of Rs 85 crore, which is adjusted in EBITDA and margin. Also, exceptional expenses during the same period were to the tune of Rs 88 crore.

Consolidated margin at the company may see a decline on the back of higher discounts. 

In the commercial vehicle- CV space, EBITDA margin is likely to see an expansion by 50 basis points. 

JLR, Passenger vehicle and commercial vehicles volumes steady

Jaguar Land Rover sales during the December quarter are expected to remain steady due to weakness in European as well as Chinese markets. EBITDA margin at the company’s subsidiary JLR are also expected to come in at 13.5 per cent as against 16.2 per cent, translating into a 2.7 per cent or 270 basis points fall year-on-year.

Tata Motors share price performance 

Tata Motors shares in the last one year have fallen over 10 per cent, while in the last 3 years it has gained 47 per cent. At the last count, shares of Tata Motors traded with a cut of over 3 per cent at Rs 735.95 per share.