Tata Motors Ltd reported a net profit of ₹2,957.71 crore in the third quarter as compared to a loss of ₹1,516.14 crore in the year-ago period. The company attributed the gain to increased demand for all its products including Jaguar Land Rover (JLR).
The company reported profit for the first time in two years in the recently ended quarter.
Total revenue from operations increased by 22.5% to ₹88,488.59 crore.
With supply improving, JLR achieved positive free cash flow and profitability. Tata Motors said in a filing, revenue was £6.0 billion, up 28% versus Q3 FY22 and 15% sequentially reflecting improved supply, stronger model mix and pricing.
Profit before tax in the quarter was £265 million, up from a loss of £9 million a year earlier.
“The higher profitability reflected increased wholesale volumes with favorable mix, pricing and partly offset by higher inflation and partly from supplier claims related to constrained volumes. Free cash flow in Q3 FY22 was £490 million ,” the company said.
Tata Commercial Vehicles’ revenue grew 22.5% to Rs 16,900 crore.
Tata Passenger Vehicles (Tata PV) revenue grew 37% to ₹11,700 crore, reflecting higher volumes and realisations. Both of these businesses reported profits.
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 continue to focus on profitable growth; Improving semiconductor supply and stable commodity prices will support revenue growth, margin improvement and positive cash distribution in the fourth quarter.”
Shailesh Chandra, Managing Director, Tata PV and Tata Passenger Electric Mobility said, “Q3FY23 was one of the best quarters for the PV industry with strong retail sales driven by new launches, strong festive demand and ample supply of vehicles “
Girish Wagh, Executive Director, Tata Motors Ltd, said: “In Q3 FY23, the CV industry witnessed a stable, overall demand. Our focus on creating a ‘demand pull’ from customers and continued emphasis on retail in Q3 FY23 resulted in retail sales growing at over 6.3%, driven by reduction in inventory as we move towards BS VI Phase-II norms.
Jaguar Land Rover Interim Chief Executive Officer Adrian Murdell said, “JLR returned to profit as chip shortages eased in the quarter and production and wholesale sales increased. These strong results are a reflection of the hard work and dedication of our people across the business. evidence, which has further increased production of our new Range Rover and Range Rover Sport models.”
Mitul Shah, Head of Research, Reliance Securities said, “Tata Motors has reported profit after 7 quarters”.