Automaker Tata Motors on Wednesday reported consolidated net profit of Rs 2,958 crore for the quarter ending December 31, 2022 as against consolidated net loss of Rs 1,516 crore in the year-ago period. The parent of Jaguar Land Rover reported its first quarterly profit in two years on rising demand for passenger cars as well as medium and heavy commercial vehicles.
The company's revenue from operations rose 22.5% at Rs 88,489 crore from Rs 72,230 crore in Q3FY22.
"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 Q4FY23," said Tata Motors in a stock exchange filing.
On Wednesday, Tata Motors' share price closed trading 0.7% lower at Rs 419.
JLR's profitability stemmed from higher sales, a favourable product mix and better pricing, partially offsetting higher inflation. The unit's profit before tax in the quarter was 265 million pounds ($326.22 million) against a loss of 9 million pounds, a year ago.
Tata Motors said its passenger vehicle business continued its strong momentum in the third quarter, with wholesales growing 33% year-on-year.
"The CV industry is poised for growth on the back of increased infrastructure activity, demand for last mile mobility and strong recovery in bus segment. Going forward, we expect a good replacement demand, especially in MHCVs in Q4 FY23, as we also maintain a close watch on the evolving geopolitical situation, inflation and interest rate risks on both the supply and demand," said Tata Motors in a stock exchange filing.
Girish Wagh, Executive Director Tata Motors Ltd said: “In Q3FY23, the CV industry witnessed a steady, overall demand. Our focus on creating ‘’Demand Pull’ from customers and sustained emphasis on retail in Q3FY23 resulted in retail sales surpassing wholesale by 6.3%, thereby enabling reduction in inventory as we transition towards BS VI phase-2 norms. Led by realisation improvement, revenue growth was higher than volume growth. Realisation improvement coupled with commodity softening and cost control resulted in improved margins."
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