JLR drives Tata Motors to ₹3,203 cr profit in Q1
NEW DELHI : Tata Motors Ltd swung to a consolidated net profit in the June quarter from a year-earlier loss lifted by robust sales of luxury vehicles by its British unit, Jaguar Land Rover, and an improved operating performance of its commercial vehicle business in India. The Mumbai-based automaker also announced that it will consolidate its capital base , converting all of its 508.5 million differential voting rights (DVR) shares to ordinary shares at a rate of seven ordinary shares for every 10 DVR shares held, resulting in a net reduction of 4.2% in its equity base.
Tata Motors posted a consolidated net profit of ₹3,203 crore for the quarter ended 30 June, compared to a net loss of ₹5,408 crore a year earlier. Revenue from operations surged 42% from a year earlier to ₹1.02 trillion, while earnings before interest and taxes (Ebit) margin jumped 8.8 percentage points to 8.1% in the quarter.
“We remain optimistic on the demand situation despite near term uncertainties and expect a moderate inflationary environment to continue in the near term. We aim to deliver a strong performance in the rest of the year too, thanks to a healthy order book coupled with low breakeven in JLR, a steady improvement in demand whilst we continue to drive our demand-pull strategy in CV, a set of exciting launches ahead of the festive season in PV and continued aggression in EVs," Tata Motors said.
JLR clocked its best-ever Q1 free cash flow at £451 million ( ₹4,751 crore). However, JLR’s vehicle production in the September quarter is expected to trail Q1 due to a planned annual summer shutdown of factories.
However, the company expects wholesales and profitability to be consistent with recent quarters. “We met a long-pending demand of our DVR
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