Tata Motors on Friday reported an 11% drop in its second-quarter profit. Net profit (attributable to shareholders) stood at Rs 3,343 crore as against Rs 3,764 crore profit in the September 2023 quarter. Revenue also fell 3.5% to Rs 1.01 lakh crore as of last quarter compared to Rs 1.05 lakh crore in the September 2023 quarter. The turnover was largely impacted by lower sales volumes.

Pre-tax profit fell to Rs 5,767 crore in the second quarter from Rs 6,035 crore in the September 2023 quarter. Earnings per share fell to Rs 9.71 per share in the second quarter from Rs 9.80 per share in the quarter of September 2023. EBITDA fell by 14.2% to Rs 11,736 crore in the September 2023 quarter on a year-on-year basis.

Tata Motors also issued a cautious comment. “We remain cautious about domestic demand in the short term,” he added. “However, the festive period and substantial investments in infrastructure should help strengthen it,” he adds.

Jaguar Land Rover’s turnover fell 5.6 per cent to £6.5 billion. Tata Motors said “temporary supply constraints” also weighed on profitability.

JLR’s EBIT margin fell 220 basis points to 5.1 percent. JLR’s profitability was “affected due to temporary aluminum supply constraints and the holding of 6,029 vehicles for additional quality checks”, the statement said.

Tata Motors’ domestic commercial vehicle revenue fell 13.9 per cent to Rs 17,288 crore due to slow infrastructure activity, reduced mining and lower use of the fleet due to heavy rain.

“In Q2FY25, domestic wholesale CV volumes were 79,800 units, down 19.6% YoY, impacted by slowdown in infrastructure project execution, reduction mining activity and an overall decline in fleet utilization due to heavy rains,” Tata Motors said.

Shares of Tata Motors ended lower on Friday. The stock fell 1.72% to Rs 805.70 on BSE. The results were announced after trading hours.