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Published: May 18, 2023
Updated: May 18, 2023

Tata Motors Achieves Milestone: Second Company to Cross Rs 1 Lakh Crore Revenue Mark

Tata Motors, a prominent automobile company, has made a significant achievement by becoming the second company, after Reliance Industries, to surpass the milestone of Rs 1 lakh crore in revenue. With its highest-ever quarterly revenue of Rs 1.06 lakh crore, Tata Motors has demonstrated robust performance driven by strong demand in India and improved supplies from its luxury car unit, Jaguar Land Rover (JLR). This remarkable feat not only places Tata Motors at the forefront of the Tata Group but also highlights its position among the top revenue-generating companies in India.

Strong Financial Performance:

Tata Motors' outstanding financial performance can be attributed to better-than-expected profits in the final quarter of the previous fiscal year. After four years of losses, the company reported a net profit of Rs 2,414 crore for the full fiscal year 2022-23, as opposed to a net loss of Rs 11,441 crore. Additionally, the company witnessed a substantial surge in revenue, recording a growth of 24.2 percent in FY23, reaching Rs 3.5 lakh crore.

Group's Overall Performance:

While Tata Motors celebrates its milestone achievement, other notable companies within the Tata Group also showcased commendable performance. Tata Steel and Tata Consultancy Services (TCS) reported revenues of approximately Rs 60,000 crore for the same quarter. Despite a 9.2 percent decline in net revenue to Rs 62,962 crore for Tata Steel, TCS, the cash churner of the group, achieved a revenue of Rs 59,162 crore, marking a 16.9 percent year-on-year increase. However, Tata Motors' net profit of Rs 5,408 crore for the March quarter falls short of TCS's profit during the same period.

Market Performance and Outlook:

Shares of Tata Motors have exhibited impressive returns, emerging as the top performer on Nifty50 since January. With a return of almost 37 percent, the company has outperformed the benchmark Nifty50, which only saw a 1.7 percent gain in the same period. Trading near its 52-week high, Tata Motors currently holds a consensus twelve-month target price of Rs 581.63, suggesting a potential upside of 9.6 percent.

Tata Motors' achievement of surpassing Rs 1 lakh crore in revenue solidifies its position as a significant player in the Indian market. The company's strong financial performance, coupled with its strategic business approach, has contributed to this remarkable milestone. As Tata Motors continues to focus on growth and generate cash flow, it aims to achieve its stated goals and further establish its presence in the automotive industry.