Tata Motors reported a net profit of Rs 3,043 for the quarter that ended in December 2022.
New Delhi: Tata Motors reported a net profit of Rs 3,043 for the quarter that ended in December 2022. It has been learnt that the automobile firm has been losing money for seven straight quarters.
The company reported a 22.5% increase in revenue to 88,500 crore and an 11.1% increase in earnings before interest, taxes, depreciation, and amortisation (Ebitda) compared to its 4.4 percent Ebit.
According to a company statement released with the exchanges, Tata Motors’ consumer vehicle segment saw revenue increase by 22.5% to Rs 16,900 crore while experiencing an 8.4% Ebitda. Additionally, it stated that the Ebitda for its passenger vehicle division was 6.9 percent, while revenue increased by 37.4 percent to 11,700 crore.
According to the company’s statement, Jaguar Land Rover (JLR) achieved positive free cash flow and profitability in the quarter as supply improved and it delivered on its plans. The December quarter saw revenues of £6.0 billion, a 28% increase over Q3 FY22 and a 15% sequential increase (quarter-over-quarter), thanks to improved supply, a good model mix, and higher prices.
JLR’s profit before taxes for the quarter increased to £265 million from a loss of £9 million a year earlier. Additionally, the company’s Ebit margin increased to 3.7% from 1.4% in Q3 FY22.
According to Tata Motors, JLR’s better profitability is attributable to higher wholesale volumes, a favourable mix, pricing, and foreign exchange, which are somewhat offset by higher inflation and supplier claims that are mostly attributable to volume constraints. Free cash flow was £490 million in Q3 FY22.