On Wednesday, Tata Motors registered its first consolidated net profit after seven quarters at Rs 2,958 crore in Q3. It recorded a 17.7 per cent on-year increase in domestic sales while its UK subsidiary Jaguar Land Rover witnessed a 15.5 per cent growth.
Improved realisations, softening commodity prices, cost control measures, festive seasons, and new launches have helped Tata Motors achieve profitability this time. The company’s December quarter consolidated revenue also grew 22.5 per cent YoY and 11.2 per cent sequentially to Rs 88,489 crore. The last time Tata Motors recorded a consolidated net profit was in December 2020. It stood at Rs 2,906 crore.
Tata Motors’ sales during Q3 touched the 50,000 monthly retail sales mark for the first time during this quarter. It reported a 17.7 per cent YoY jump in its domestic sales to 2.23 lakh units in Q3. Steady demand for commercial and passenger vehicles contributed to profitability in the Indian business. It received more than 20,000 orders for the Tiago EV which is priced at Rs 8.49 lakh (ex-showroom). Tata Motors also introduced new EVs, Harrier EV and Sierra EV, at the recently concluded Auto Expo 2023.
In the December quarter, its UK subsidiary JLR achieved profitability at 265 million pounds. Last year, during the same period, it recorded a loss of 9 million pounds. Easing chip shortage, and introducing a more favourable product and pricing mix helped JLR achieve this. Its orders touched 2.15 lakh units at the end of Q3. The company reported a free cash flow of 490 million pounds. Although JLR’s China unit is impacted by Covid-19, the company expects it to recover in Q4.
