Tata Motors, a prominent player in the global automotive sector, has revealed its Q4FY25 financial outcomes, including a significant final dividend of ₹6 per equity share, representing an impressive 300% of its face value of ₹2. This announcement aligns with the results for the March quarter, which notably exceeded market expectations. The company stated, "The Board of Directors convened today and has recommended a final dividend of ₹6.00 per equity share for the fiscal year ending March 31, 2025. If sanctioned at the upcoming AGM, payments will be disbursed to eligible shareholders by June 24, 2025."

Tata Motors Q4FY25 Financial Highlights

• Net Profit: Tata Motors experienced a 51.34% year-on-year (YoY) drop in consolidated net profit, totaling ₹8,470 crore for Q4FY25, compared to ₹17,407 crore during the same period last year.
• Revenue: The company reported a slight revenue increase of 0.4% YoY, amounting to ₹1,19,502 crore.
• EBITDA: The earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 4.1% YoY decrease, standing at ₹16,700 crore.

Notably, Jaguar Land Rover (JLR), which contributes roughly two-thirds to Tata Motors’ total revenue, showcased a 2.4% growth in revenue, aiding overall financial performance. Despite the revenue increase, operating metrics reflected challenges, with EBITDA margins contracting by 60 basis points to 14%.

Analysts’ Projections and Yearly Review

Prior estimates from domestic brokerage Nuvama Institutional Equities predicted an even steeper 56% YoY decline in net profit, forecasting a figure of ₹7,681 crore along with flat revenue at ₹1,20,454 crore and a 6% YoY dip in EBITDA to ₹16,001 crore.

For the entirety of fiscal year FY25, Tata Motors reported record-breaking revenue of ₹4,39,695 crore, reflecting a 1.3% YoY increase. However, net profit faced an 11.4% YoY decline, settling at ₹27,830 crore.

Conclusion

Tata Motors continues to navigate a complex market landscape, balancing growth in certain segments like JLR with challenges in profitability. The company’s strategic decisions, including dividend declarations, signal confidence in its long-term prospects. Investors and stakeholders will be keenly observing the upcoming AGM for final approvals and further insights into Tata Motors’ future direction.