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Tata Motors turned profit of ₹2,960 crore in Q3

Company attributes profit to increasing demand for its products including those of Jaguar Land Rover (JLR)

January 25, 2023 09:05 pm | Updated January 26, 2023 10:45 am IST - Mumbai

Tata Motors Ltd. reported third-quarter consolidated net profit of ₹2,957.71 crore compared with a loss of ₹1,516.14 crore in the year-earlier period. The company attributed the profit to increasing demand for all its products including those of Jaguar Land Rover (JLR).

The company reported profit for the first time in two years, in the most recently ended quarter.

Total revenue from operations rose 22.5% to ₹88,488.59 crore.

JLR achieved positive free cash flow and profitability as supplies improved. Revenues were £6.0 billion, up 28% vs. Q3 FY22 and up 15% sequentially reflecting better supplies, strong model mix and pricing, Tata Motors said in a filing.

Profit before tax in the quarter was £265 million, up from a loss of £9 million a year earlier.

“The higher profitability reflects increased wholesale volumes with favourable mix, pricing and foreign exchange offset partially by higher inflation and supplier claims largely related to constrained volumes. Free cash flow was £490 million in Q3 FY22,” the company said.

Tata Commercial Vehicles revenue climbed 22.5% to ₹16,900 crore.

Tata Passenger Vehicles (Tata PV) revenue jumped 37% to ₹11,700 crore, reflecting higher volumes and realisations. Both these business reported profit.

On the outlook, P. Balaji, CFO, Tata Motors Group, said, “We remain cautiously optimistic on the demand situation despite global uncertainties. We will remain vigilant on demand and our continued focus on profitable growth; improving semiconductor supplies and stable commodity prices will aid revenue growth, margin improvement and positive cash delivery in Q4.”

Shailesh Chandra, Managing Director, Tata PV and Tata Passenger Electric Mobility, said, “Q3 FY23 was one of the best quarters for the PV industry with strong retails from new launches, robust festive demand, and adequate supply of vehicles.”

Girish Wagh, executive director Tata Motors Ltd. said: “In Q3 FY23, the CV industry witnessed a steady, overall demand. Our focus on creating ‘’demand pull’ from customers and sustained emphasis on retail in Q3 FY23 resulted in retail sales surpassing wholesale by 6.3%, thereby enabling reduction in inventory as we transition towards BS VI phase-2 norms.”

Adrian Mardell, Jaguar Land Rover’s interim chief executive officer, said, “JLR has returned to profit as chip shortages eased in the quarter and production and wholesales increased. These improved results are testament to the hard work and dedication of our people across the business who have delivered a further increase in production of our New Range Rover and Range Rover Sport models.”

Mitul Shah, Head of Research at Reliance Securities said “Tata Motors has reported profit after 7 quarters”

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