Tata Motors lines up Rs 38,000 crore capex spend in FY24

Tata Motors is lining up a consolidated capex of Rs 38,000 crore for FY24, including 3 billion pounds (about Rs 31,600 crore) for JLR and Rs 8,000 crore for Tata Motors. Strong performance by JLR and sustained price profitability by the passenger and commercial vehicles sectors allowed the company to improve cash flows and reduce net debt by Rs 2,500 crore in Q1FY24, said group chief CFO P B Balaji.

The company recorded a 42% jump in cumulative revenue at Rs 1,02,200 crore with a 177% jump in ebitda (earnings before interest taxes depreciation and amortisation) at Rs 14,700 crore in the June quarter. The results showed a sharp improvement driven by JLR even as the passenger business was steady. Net profit was Rs 3,300 crore while profit before tax was at Rs 5,300 crore. JLR revenues impro- ved by 57% to nearly 7 billion pounds on strong wholesales and improved mix. Commercial vehicle volumes were lower by 15% due to production loss on account of transition to BS6 phase 2 but margins improved due to better mix and price hikes.
The company’s consolidated net debt came down by Rs 2,500 crore in Q1FY24 at around Rs 41,000 crore of which Tata Motors India share was Rs 8,200 crore.

“We are on track with the target of going net debt-free in the domestic business and JLR debt being less than a billion pounds,” said Balaji. JLR saw a strong performance with sales up 30% and an order book of 185,000 units. JLR’s net debt came down to 2. 5 billion pounds and with 451 million pounds it generated the highest Q1 cash flow on record also clocking cumulative free cash flow of 1. 8 billion pounds over the last three quarters. “For JLR demand at the top end is extremely strong though there is stress at the lower end of the portfolio but we’re more than adequately funded to support the overall portfolio,” explained Balaji.

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