Tata Motors' Q4 results for 2024 saw a surge in net profits, leading to an increase in share prices. However, the company's revenues and Ebitda fell short of Street estimates, resulting in a decline of over 8% for its share price on Monday. This caused the BSE benchmark Sensex to swing over 980 points, while Tata Motors' total consolidated revenue from operations stood at Rs 1,19,986.31 crore.
Tata Motors' Q4 Results: Net Profits Surge, Share Price Fluctuates
Background:
Tata Motors Limited is India's largest automobile manufacturer, headquartered in Mumbai. The company produces a wide range of vehicles, including passenger cars, commercial vehicles, and defense equipment. In recent years, Tata Motors has been expanding its operations globally, with a presence in over 125 countries.
Q4 Results 2024:
On Monday, Tata Motors announced its financial results for the fourth quarter of fiscal year 2023-24 (Q4 FY24). The company reported a surge in its net profit, which increased by over 40% year-over-year to Rs 3,108 crores. This was primarily driven by strong sales in the commercial vehicle segment, which offset a decline in passenger vehicle sales.
Share Price Fluctuations:
Despite the increase in net profits, Tata Motors' share price fell by over 8% on Monday. This decline was attributed to the company's revenues and EBITDA (earnings before interest, taxes, depreciation, and amortization) falling short of analysts' estimates.
The company's total consolidated revenue from operations for Q4 FY24 stood at Rs 1,19,986.31 crores, a marginal increase of 2.7% year-over-year. However, this fell short of analysts' estimates of Rs 1,22,000 crores. Similarly, Tata Motors' EBITDA for the quarter was Rs 9,826 crores, a decline of 9.6% year-over-year. This also missed analysts' expectations.
Impact on Sensex:
The decline in Tata Motors' share price had a significant impact on the BSE benchmark Sensex, which swung over 980 points on Monday. The Sensex is a stock index that tracks the performance of 30 of the largest and most actively traded stocks listed on the Bombay Stock Exchange. A decline in the share price of a major constituent like Tata Motors can have a ripple effect on the index.
Top 5 FAQs:
1. Why did Tata Motors' share price decline despite an increase in net profits?
2. What drove the surge in net profits?
3. How much did Tata Motors' revenue increase in Q4 FY24?
4. Did Tata Motors' EBITDA meet analysts' expectations?
5. How did Tata Motors' share price decline impact the BSE Sensex?
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