Business · Companies · 8 hrs ago
Tata Motors’ commercial vehicle business posts ₹2,138 crore Q2 profit
Tata Motors’ commercial vehicle business made a ₹2,138 crore standalone profit in the quarter ending in September, compared with a loss a year earlier.
The result includes its joint venture Tata Cummins and was higher than the average analyst estimate cited.
Revenue rose 42% to ₹23,930 crore, as truck and bus demand strengthened.
The company said stronger goods movement, industrial activity and mining output helped lift sales, while total wholesale volumes rose 42% to 135,100 vehicles.
Higher steel and rubber costs pressured margins, which were 11.7%, down 0.9 percentage points from a year earlier.
On a consolidated basis, including subsidiaries, Tata Motors reported a ₹1,257 crore profit, and its net cash position stood at ₹15,900 crore.
The company expects industry growth to moderate in the second half, but its chief executive said the industry should still finish FY27 with double-digit growth and Tata Motors is likely to outperform.
Tata Motors’ commercial vehicle business reported a standalone net profit of ₹2,138 crore for the September quarter, compared with a loss a year earlier.
The result included joint venture Tata Cummins and was above the average analyst estimate of ₹1,933.5 crore.
Revenue from operations rose 42% to ₹23,930 crore, supported by stronger demand across truck and bus segments.
Margins fell 0.9 percentage points from a year earlier to 11.7% as steel and rubber costs rose.
The business generated ₹4,606 crore in free cash flow and ended September with a net cash position of ₹11,300 crore.
- Who
- Tata Motors’ commercial vehicle business, including joint venture Tata Cummins.
- What
- It reported a standalone net profit of ₹2,138 crore for the quarter, compared with a loss of ₹1,021 crore a year earlier.
- When
- The second quarter, covering the September quarter.
- Where
- Not stated.
- Why
- Stronger goods movement, higher fleet utilisation, industrial activity and mining output boosted sales.
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- Standalone net profit
- ₹2,138 crore
- Revenue from operations
- ₹23,930 crore, up 42%
- Profit a year earlier
- Loss of ₹1,021 crore
- Operating margin
- 11.7%, down 0.9 percentage points year on year
- Free cash flow
- ₹4,606 crore
- Net cash position
- ₹11,300 crore at the end of September
What people are saying
Even as we expect growth in the second half of the year to moderate due to last year’s high base, the industry should end FY27 with double-digit growth and Tata Motors is likely to outperform