📷 Image Credits: The Economic Times
Tata Motors, the country’s largest four-wheeler electric vehicle manufacturer, has reached an impressive milestone by turning its Indian business net debt free in FY24. The company’s shares soared by 2% in response to this positive development, trading at Rs 991 apiece on June 11. Tata Motors’ UK arm, Jaguar Land Rover (JLR), also showcased a strong performance, reporting a 29% year-on-year increase in May sales.
In its annual report for FY24, JLR highlighted a significant improvement in EBITDA margins driven by a richer product mix and operating leverage benefits. The company’s focus on electric vehicle (EV) development is evident through its target to achieve EV EBITDA breakeven by FY26.
Tata Motors is not just looking at short-term gains, as it aims for a consolidated 10% EBITDA for its passenger vehicle (PV) and EV operations by FY30. The company’s long-term commitment to sustainability and profitability is further reinforced by its strategies to enhance market share and launch premium EVs.
The impressive financial performance of Tata Motors was also reflected in its Q4FY24 results, where it posted a remarkable 222% growth in consolidated net profit, reaching Rs 17,407.18 crore. The company’s aggressive targets and growth trajectory have garnered positive responses from analysts, with Motilal Oswal, JM Financial, and ICICI Securities offering varying ratings and target prices.
With Tata Motors’ relentless focus on innovation, sustainability, and market dominance, the future looks promising for the company. Investors are closely watching the company’s progress, and the recent achievement of becoming net debt-free in its Indian business has certainly reinforced confidence in Tata Motors’ growth prospects.
