MUMBAI: India’s Tata Motors returned to profitability after seven quarters in the red, as easing semiconductor shortages and stabilising commodity prices helped the automaker meet strong demand for its vehicles.
The Mumbai-based parent company of Jaguar Land Rover (JLR) posted a profit of 29.6 billion rupees ($362.5 million) in the December quarter, compared to a loss of 15.2 billion rupees in the same period last year.
Total revenue from operations rose 22.5 percent on-year to 884.9 billion rupees, thanks to improved production and strong demand across its passenger vehicle segments.
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Jaguar Land Rover saw revenues rise 28.1 percent to £6.04 billion ($7.4 billion) in the quarter, as supply bottlenecks eased and pricing improved.
The British subsidiary posted a profit before tax of £265 million, compared to a £9 million loss in the same quarter last year.
“JLR has returned to profit as chip shortages eased in the quarter and production and wholesales increased,” interim chief executive officer Adrian Mardell said in a statement.
The company said sales to auto dealerships in China were hurt due to lockdowns followed by high staff absences as coronavirus restrictions were relaxed, but were expected to normalise in the ongoing quarter.
Pending orders at JLR, Britain’s biggest carmaker, rose to a record high of 215,000 units at the end of December, as customers ordered 95,000 more units in the quarter.
The company said it will be launching a fully electric Jaguar model – built at its Solihull plant – in 2025, “heralding an exciting new era of electric car production in the UK”.
Revenues from Tata Motors’ commercial vehicle business rose 22.5 percent on-year to 168.9 billion rupees, helped by improved infrastructure activity in India.
But commercial vehicle exports remained weak on subdued demand in key overseas markets, the company said, pointing to “geopolitical situation, inflation and interest rate risks” on supply and demand.
Demand for passenger vehicles remained strong, with revenues up 37.4 percent on-year to 116.7 billion rupees, and 138,900 retail sales, the highest in any quarter.
Shares in Tata Motors closed 0.73 percent lower in Mumbai ahead of the earnings announcement.