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Automotive manufacturer Tata Motors on Wednesday posted its first quarterly profit in two years on rising demand for passenger cars as well as medium and heavy commercial vehicles. The Mumbai-headquartered company reported a consolidated net profit of 2,957.71 crore for the third quarter ending December (Q3FY23). 

The company had reported a net loss of 1,516 crore in the year-ago period (Q3FY22) and 944.61 crore in the previous September quarter (Q2FY23), respectively.

The parent of Jaguar Land Rover reported a consolidated revenue from operations at 88,488.59 crore, up 22.5% as against 72,229 crore from the year-ago period.

The auto major's consolidated operating profit, calculated as earnings before interest, taxes, depreciation and amortization or EBITDA, surged 11% YoY to 9,900 crore and the margin improved 90 basis points to 11.1%.

Analysts estimated the homegrown auto major to post a consolidated net profit of 285 crore.

JLR segment

For the third quarter, JLR revenue came in at £6.0 billion, up 28% as against Q3FY22 and up 15% sequentially reflecting better supplies, strong model mix and pricing.

Meanwhile, earnings before interest and tax (EBIT) margin expanded a sharp 230 bps on-year to 3.7%. EBITDA margin, however, dipped 10 bps to 11.9%.

The 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, the company said.

The revenue of Tata Commercial Vehicles in the third quarter were up 22.5% as against Q3FY22 at 16.9k crore.

Tata Passenger Vehicles revenue were up 37% as compared to Q3FY22 at 11.7K crore reflecting higher volumes and realizations.

“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 Q4 FY23," the company said in an exchange filing.

On Wednesday, Tata Motors scrip was done 0.84% to settle at 418.60 on NSE.

ABOUT THE AUTHOR

Meghna Sen

Meghna Sen is a deputy chief content producer at Livemint where she tracks companies, markets, news. She has 5+ years of experience with online and print publications. Email: meghna.sen@htdigital.in
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