Business

IIE DIGITAL DESK : May 14, 2025 – Tata Motors Ltd. experienced a 3% decline in its share price on Wednesday, trading at ₹686 on the BSE, after the company reported a significant drop in its consolidated net profit for the fourth quarter of fiscal year 2024–25. Despite the profit decline, the company declared a final dividend, which provided some reassurance to investors. 

The automaker's consolidated net profit for Q4FY25 fell by 51% year-on-year to ₹8,470 crore, down from ₹17,407 crore in the same period the previous year. Revenue from operations remained relatively flat at ₹1.19 lakh crore. The decline in profit was primarily attributed to the absence of a one-time tax benefit that had positively impacted the previous year's earnings.  

In response to the earnings report, Tata Motors' stock opened lower and continued to decline during the trading session. Analysts noted that while the profit figures were below expectations, the company's revenue stability and dividend declaration helped mitigate investor concerns.

The company's board recommended a final dividend of ₹6 per share for FY25, an increase from the ₹3 per share declared in the previous year. This decision reflects Tata Motors' commitment to delivering value to its shareholders despite the challenging financial quarter. 

Tata Motors' management acknowledged the challenging environment, citing factors such as geopolitical tensions and trade uncertainties that have impacted the automotive industry globally. The company emphasized its focus on strengthening its core business segments and exploring growth opportunities in electric vehicles and other emerging markets.  

Looking ahead, Tata Motors aims to navigate the complex market dynamics by leveraging its diversified portfolio and strategic initiatives. The company remains optimistic about its long-term prospects and is committed to enhancing shareholder value through prudent financial management and operational excellence.

Investors are advised to closely monitor the company's performance in the upcoming quarters, as Tata Motors continues to adapt to the evolving industry landscape and address the challenges posed by the global economic environment.