Tata Motors returns to profit with ₹1,254 crore in Q2 earnings as CV sales rise 42%
Girish Wagh, managing director and chief executive of Tata Motors, said sales growth is expected to moderate as the impact of a higher base kicks in, but the company expects the domestic commercial vehicle industry to post double-digit growth for the full year
India's largest commercial vehicle manufacturer, Tata Motors Ltd, returned to profit in the July-September quarter with a net profit of ₹1,254 crore, following a loss of ₹867 crore in the same period last year, as higher sales and reduced losses on equity investments helped boost its bottom line. Revenue increased by 36% year-on-year to ₹25,338 crore, while vehicle sales rose 42% to 135,100 units.
Tata Motors reported an EBITDA margin of 10.9%, down 40 basis points from the previous quarter due to rising commodity costs, prompting the company to take cost-saving measures and price increases. CEO Girish Wagh stated that sales growth may moderate as the higher base effect sets in but expects the domestic commercial vehicle industry to achieve double-digit growth for the full year.
Tata Motors is also set to begin integrating Italian truck maker Iveco Group into its operations from the January-March quarter, after completing the tender offer process.
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