Tata Motors Chairman N Chandrasekaran introduced that the corporate has turn out to be debt-free and can function as two unbiased listed entities by the top of this calendar 12 months. Addressing shareholders on the eightieth Annual Normal Assembly (AGM) of Tata Motors Ltd. on June 20, Chandrasekaran started his speech with a second of silence to honour the victims of the current Air India Flight 171 tragedy. He additionally paid tribute to the late Ratan Tata, calling him a mentor and a pacesetter whose values formed the Tata Group.
Talking in regards to the demerger course of, Chandrasekaran stated that Tata Motors will quickly be break up into two listed firms — one targeted on industrial automobiles (CV) and the opposite on passenger automobiles (PV) and Jaguar Land Rover (JLR). He famous that over the previous few years, the corporate has considerably streamlined operations and strengthened every phase to function independently, with devoted management and clear strategic course.
Highlighting the efficiency of the Business Automobiles phase, he stated it generated ₹75,100 crore in income and a report EBITDA of ₹8,800 crore. The division delivered ₹7,500 crore in free money flows and achieved a robust Return on Capital Employed (ROCE) of 37.7%. Whereas the enterprise gained market share in vans and buses, Chandrasekaran acknowledged that the small industrial automobile phase continues to underperform and stays a key focus space for the corporate within the coming 12 months.
Within the Passenger Automobiles phase, Tata Punch grew to become India’s top-selling SUV, whereas CNG and EVs collectively accounted for 36% of the corporate’s multi-powertrain portfolio. The PV enterprise reported ₹48,445 crore in income and an EBIT of 0.9%, with an enchancment in EBITDA margins by 40 foundation factors over FY24 pushed by disciplined value management and localisation efforts.
Jaguar Land Rover (JLR) delivered a sturdy efficiency with revenues of £28.9 billion and an EBIT of 8.5%, leading to a pre-tax revenue of £2.5 billion. JLR additionally turned internet money optimistic for the 12 months. The continued robust demand for the Vary Rover and Defender sequence contributed considerably to this progress. Chandrasekaran added that the corporate has begun native meeting of Vary Rover and Vary Rover Sport in India, making the enduring luxurious manufacturers extra accessible to Indian customers.
On a consolidated stage, Tata Motors recorded its highest-ever income of ₹4,39,695 crore, an EBITDA of ₹57,649 crore, and a pre-tax revenue (earlier than distinctive gadgets) of ₹34,330 crore in FY25. These figures marked a milestone, because the Tata Motors Group grew to become debt-free throughout the 12 months. Chandrasekaran shared that he had personally up to date Ratan Tata on the PV enterprise turnaround earlier than his passing, and that Mr. Tata had expressed deep satisfaction with the progress, given his emotional connection to the corporate.
The Board has advisable a remaining dividend of ₹6 per unusual share for FY25, topic to shareholder approval. Trying forward, Chandrasekaran cautioned that financial cycles will proceed to be marked by volatility, citing geopolitical conflicts, shifting provide chains, tariffs, AI disruption, and vitality transition as key challenges. Nevertheless, he expressed confidence in Tata Motors’ preparedness to navigate this advanced panorama, stating that the corporate’s simplified construction, daring strategic selections, and powerful monetary well being have positioned it to not simply survive however thrive within the evolving world setting.
