Tata Motors reported a 133.2% increase in net profit to INR 7,100 crore for the December quarter, with consolidated revenue growing 25% year-on-year to INR 1,10,600 crore.
On Friday, Tata Motors announced that it has commenced operations on its gigafactory project in Somerset, UK, highlighting that financial arrangements for the project are currently being finalized. During the earnings call, Tata Motors Group CFO P B Balaji mentioned the project’s progress, including land acquisition and initiation of land-leveling activities, and addressed the manageable impact of the Red Sea crisis on the company’s operations.
Earlier in the day, the company revealed a significant jump in net profit by 133.2% to INR 7,100 crore for the December quarter, alongside a 25% increase in year-on-year consolidated revenue to INR 1,10,600 crore. This financial performance coincides with Tata Motors’ strategic initiative announced last July to establish a global battery cell gigafactory in the UK with an investment exceeding 4 billion pounds. This move is aimed at bolstering the automotive sector’s shift towards electric mobility.
Balaji expressed confidence in the project’s progress, noting the green light on all systems for execution in the UK and the ongoing efforts towards achieving financial closure. He also remarked on the challenges posed by the Red Sea crisis, stating that despite some impacts, the situation remains under control, with the company taking measures to minimize potential disruptions, including adjusting shipping routes, which add approximately ten days to certain deliveries.
He further discussed the Electric Vehicle (EV) market dynamics, indicating a sequential increase in EV sales volumes without any noticeable cannibalization between the EV and CNG segments. The company observes strong growth in both areas, with incremental volumes expected to continue. Balaji projected that EV sales would constitute 25-30% of the company’s total sales in FY25 and FY26, reflecting Tata Motors’ optimistic outlook on the EV market’s potential for growth.