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Tata Motors turns net debt free in FY24; shares recover 2.5% from lows

The presentation also highlighted that Jaguar Land Rover (JLR) is on course to achieve net debt-free status in the financial year 2025 (FY25)

Tata Motors

Tata Motors

Tanmay Tiwary New Delhi

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Tata Motors net debt free: Automaker Tata Motors' shares bounced 2.5 per cent from lows after the company said it has achieved net debt-free status for the financial year 2024 (FY2024).

After dropping in the morning trade on Tuesday, to a low of Rs 966.75 per share, the stock reversed course to hit an intraday high of Rs 991 per share. At 12:10 PM, the stock was at Rs 987 apiece, 1.25 per cent higher from its previous close, as against the benchmark Sensex's 0.26 per cent rise.

The presentation also highlighted that Jaguar Land Rover (JLR) is on course to achieve net debt-free status in the financial year 2025 (FY25).

"All businesses are self-sustaining, with investment spends well funded," said Tata Motors.
 
Outlook
 
Tata Motors also shared its outlook across segments: in the Commercial Vehicle (CV) sector, it aims for a steady rise in market share accompanied by revenue growth that outperforms the market. For the Passenger Vehicle (PV) segment, the company anticipates surpassing market growth projections, targeting a 16 per cent market share by FY27 and 18-20 per cent within the next 2-3 years.

In the Electric Vehicle (EV) domain, Tata Motors is focused on maintaining its leadership position, aiming for over 30 per cent market share by FY30.

Tata Motors, a part of the $150 billion Tata Group and a $44 billion organisation, stands as a prominent global automobile manufacturer, producing cars, utility vehicles, pickups, trucks, and buses. Headquartered in Mumbai, its subsidiaries include Jaguar Land Rover and Tata Daewoo.

May Auto Sales

In May 2024, Tata Motors recorded total sales of 76,766 units, showing a slight uptick from 74,973 units in May 2023. 
 
Notably, domestic passenger vehicle sales, inclusive of electric cars, witnessed a 2 per cent surge, reaching 46,697 units. 

While international business experienced remarkable growth, with a 257 per cent increase, selling 378 passenger vehicles, electric vehicle sales dipped 4 per cent to 5,558 units. 

The company's domestic sales of medium and heavy commercial vehicles, including trucks and buses, stood at 12,987 units, compared to 11,776 units in May 2023. 

The combined total sales for this category, including both domestic and international operations, rose to 13,532 units from 12,292 units during the same period last year.

The market capitalisation of Tata Motors is Rs 3,27,943.76 crore, according to Bombay Stock Exchange (BSE).

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First Published: Jun 11 2024 | 12:24 PM IST

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