Tata Motors, in the fourth quarter of FY23, reported a consolidated net profit of $5,407.79 crore as opposed to a net loss of $1,032.84 crore in the same period the previous year. The Q4FY23 net profit increased by over 83% sequentially.
Tata Motors FY 23 Valuation
After the auto giant Tata Motors announced solid results for the fourth quarter of FY23, brokerages responded favorably, and the share price of Tata Motors increased by more than 4% to reach a 52-week high of $537.15 per unit on Monday.
In the fourth quarter of FY23, Tata Motors reported a consolidated net profit of $5,407.79 crore as opposed to a net loss of $1,032.84 crore in the same period the previous year. The Q4FY23 net profit increased by over 83% sequentially.
Tata Motors operating revenue climbed
The company’s operating revenue climbed to 1,05,932.35 crore in the fourth quarter of the current fiscal year from 78,439.06 crore in the previous quarter. The amount of income for the three months ending in December 2022 was 88,488.59 crore.
Tata Motors supply of Jaguar Land Rover (JLR)
Strong local demand, better supply at Jaguar Land Rover (JLR), and increased volumes at Tata Motors, the company said. It also added that stronger ASPs and greater revenue growth were the results of price measures and a richer product mix. Strong gains in margins and earnings were made possible by decreasing inflation, a stronger product mix, price adjustments, and advantageous operational leverage.
Tata Motors offered final dividend of Rs. 2
A final dividend of 2 per ordinary share and 2.1 per share for DVR shareholders was also suggested by the company’s board of directors.
Following the release of Tata Motors’ Q4 results, brokerages generally raised their target prices for the stock. As reported by brokerages:
Positive outlook from Goldman Sachs for Jaguar Land Rover (JLR)
Positive Jaguar Land Rover (JLR) outlook and domestic electric vehicle (EV) catalysts, according to Goldman Sachs, set up a good FY24. The JLR margins surprised to the upside in the fourth quarter, driven by favourable mix, pricing, and progress on lean measures, beating expectations by 6% and 105%, respectively.
The firm maintained its Buy recommendation on Tata Motors while increasing its target price from 550 to 600 per share.
Does Tata give bonus shares?
Ans. Tata Group stock rose from 1 lakh to 12.55 crore in 14 years thanks to a 1:10 stock split and bonus shares.