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Tata Motors Reports Broad Q1 Recovery In Commercial Vehicles
ECONOMY & POLICY

Tata Motors Reports Broad Q1 Recovery In Commercial Vehicles

Tata Motors reported double-digit growth in first quarter, with heavy commercial vehicle volumes up 22 per cent to 26,400 units and intermediate and light commercial vehicle volumes up 16 per cent to 17,100 units. Passenger commercial vehicle volumes rose 23 per cent to 18,700 units and small commercial vehicles and pickups increased 35 per cent to 38,300 units. E-way bill generation, diesel consumption and FASTag collections indicated healthy goods movement and fleet utilisation improved from April to June. Management said fleet replacement of four- to six-year-old trucks was adding capacity.

Ace and Intra ranges supported SCV momentum and company retailed more than 3,200 electric small commercial vehicles, four times the year-earlier level. Electric penetration in SCVs and pickups reached double digits in May and June and electric commercial vehicle volumes grew almost threefold, with more than 3,400 orders secured across freight, logistics and passenger mobility. Lenders were reported to be more comfortable with electric commercial vehicles as operating and repayment data and battery warranties improve financing confidence.

Commodity inflation pressured margins, with variable costs rising by Rs6,490 million (mn) and creating 340 basis points of margin impact, while higher volumes and mix added Rs6,860 mn and better realisations contributed Rs4,020 mn. EBITDA was Rs22,630 mn; margin was 11.7 per cent and EBIT margin 9.4 per cent. The company raised prices by two per cent from April and by around 2.5 per cent from July and pursued cost containment; supply-chain pressure prompted suppliers and the company to expand capacity.

Exports rose 35 per cent year on year to 8,100 units, with higher shipments to Indonesia, SAARC countries and sub-Saharan Africa offsetting West Asia disruptions, and deliveries began against a 70,000-unit Indonesian order across FY27 and FY28. Standalone free cash flow swung to Rs11,140 mn from Rs17,960 mn outflow a year earlier and net cash was Rs70,710 mn after Rs14,730 mn dividend; investment spending was Rs5,150 mn or 2.7 per cent of revenue. The group increased its Freight Tiger stake for Rs960 mn and plans to merge it with Fleet Edge.

Tata Motors reported double-digit growth in first quarter, with heavy commercial vehicle volumes up 22 per cent to 26,400 units and intermediate and light commercial vehicle volumes up 16 per cent to 17,100 units. Passenger commercial vehicle volumes rose 23 per cent to 18,700 units and small commercial vehicles and pickups increased 35 per cent to 38,300 units. E-way bill generation, diesel consumption and FASTag collections indicated healthy goods movement and fleet utilisation improved from April to June. Management said fleet replacement of four- to six-year-old trucks was adding capacity. Ace and Intra ranges supported SCV momentum and company retailed more than 3,200 electric small commercial vehicles, four times the year-earlier level. Electric penetration in SCVs and pickups reached double digits in May and June and electric commercial vehicle volumes grew almost threefold, with more than 3,400 orders secured across freight, logistics and passenger mobility. Lenders were reported to be more comfortable with electric commercial vehicles as operating and repayment data and battery warranties improve financing confidence. Commodity inflation pressured margins, with variable costs rising by Rs6,490 million (mn) and creating 340 basis points of margin impact, while higher volumes and mix added Rs6,860 mn and better realisations contributed Rs4,020 mn. EBITDA was Rs22,630 mn; margin was 11.7 per cent and EBIT margin 9.4 per cent. The company raised prices by two per cent from April and by around 2.5 per cent from July and pursued cost containment; supply-chain pressure prompted suppliers and the company to expand capacity. Exports rose 35 per cent year on year to 8,100 units, with higher shipments to Indonesia, SAARC countries and sub-Saharan Africa offsetting West Asia disruptions, and deliveries began against a 70,000-unit Indonesian order across FY27 and FY28. Standalone free cash flow swung to Rs11,140 mn from Rs17,960 mn outflow a year earlier and net cash was Rs70,710 mn after Rs14,730 mn dividend; investment spending was Rs5,150 mn or 2.7 per cent of revenue. The group increased its Freight Tiger stake for Rs960 mn and plans to merge it with Fleet Edge.

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