NEW DELHI: Homegrown auto major Tata Motors has bounced back to profitability after reporting consecutive quarterly losses for two years. The carmaker, which also owns Jaguar Land Rover (JLR), on Wednesday, reported a consolidated net profit of Rs 2,958 crore for the quarter ending December 31, 2022 (Q3FY23), as against consolidated net loss of Rs 1,516 crore in the year-ago quarter.
“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 Q4FY23,” said Tata Motors in a regulatory filing. Its revenue from operations rose 22.5% at Rs 88,489 crore from Rs 72,230 crore in Q3FY22. The company’s profit margin rose 90 bps year-on-year to 11.1% during December quarter.
The biggest highlight for Tata Motors was improvement in JLR business as a shortage of semiconductors had severely dented its and parent firm’s growth prospects. JLR delivered on its plans and achieved positive free cash flow and profitability in the quarter as supplies improved. Revenues were £6 billion (Rs 60,000 crore), up 28% as against Q3FY22 and up 15% sequentially, reflecting better supplies, strong model mix and pricing.
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