MUMBAI: India’s Tata Motors on Tuesday reported its third-straight quarter of profits, on the back of a strong showing by its British luxury subsidiary Jaguar Land Rover.
The Mumbai-headquartered automaker posted a net profit of 32.03 billion rupees ($391.2 million) for the three months to June 30, after recording a net loss of 50.07 billion rupees ($611.7 million) for the same period last year.
The results for the first reporting quarter of the 2023-24 financial calendar were slightly above analysts’ expectations.
“FY24 has begun on the right note with all automotive verticals delivering strong performances,” chief financial officer P.B. Balaji said in a statement.
“We remain confident of sustaining this momentum in the rest of the year.”
The passenger and commercial vehicle maker had returned to profit in the last three months of 2022 as it recovered from chip shortages and the impact of the Covid-19 pandemic.
Total revenue from operations reached 1.02 trillion rupees ($12.48 billion) for the April to June period, a 42 percent jump from the previous corresponding quarter.
Driving the performance was Jaguar Land Rover (JLR), which reported revenues of £6.9 billion ($8.84 billion), up 57 percent year-on-year, boosted by a 29 percent increase in retail sales.
The division added that parent company Tata Group’s plans to build a £4-billion gigafactory in Britain would provide a “stable and secure supply of battery cells to electrify JLR’s next generation modern luxury vehicles”.
Revenues for Tata Motors’ commercial vehicle business rose by 4.4 percent year-on-year and by 11.1 percent for its passenger vehicles arm.
Shares in Tata Motors closed 1.62 percent higher in Mumbai trading ahead of the earnings announcement.
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