Tata Motors back in black after 7 quarters, posts Rs 3,043 in profit

MUMBAI: Tata Motors has posted Rs 3,043 as net profit for the quarter ended December 2022. The automobile firm had been incurring loss for seven consecutive quarters, it has been learnt.

Its revenue went up 22.5 per cent to Rs 88,500 crore, the company said, adding that earnings before interest, taxes, depreciation, and amortization (Ebitda) was 11.1 per cent whereas its Ebit was 4.4 per cent.

The company in a statement shared with exchanges said Tata Motors' consumer vehicle business' revenue grew 22.5 per cent to Rs 16,900 crore whereas its Ebitda was at 8.4 per cent. It also said its passenger vehicle business' revenue jumped 37.4 per cent to Rs 11,700 crore whereas its Ebitda was 6.9 per cent.

The company's statement said Jaguar Land Rover (JLR) delivered on its plans and achieved positive free cashflow and profitability in the quarter as supplies improved.

Revenues were £6.0 billion in the December quarter, up 28 per cent, against Q3 FY22 and were up 15 per cent sequentially (quarter-on-quarter) reflecting better supplies, strong model mix and pricing. JLR's profit before tax in the quarter was £265 million, up from a loss of £9 million a year ago with a positive Ebit margin of 3.7 per cent, up from 1.4 per cent in Q3 FY22.

Tata Motors said JLR's 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.