With the help of strong sales of luxury vehicles by its British division, Jaguar Land Rover, and an improved operating performance of its commercial vehicle company in India, Tata Motors Ltd. turned a year-earlier deficit into a consolidated net profit in the June quarter.
The automaker, which has its headquarters in Mumbai, also declared that it would consolidate its capital base by converting all of its 508.5 million differential voting rights (DVR) shares into common stock at a ratio of seven common shares for every ten DVR shares held, resulting in a net decrease in its equity base of 4.2%.
For the quarter that ended on June 30, Tata Motors reported a consolidated net profit of ₹3,203 billion, up from a net loss of ₹5,408 billion in the same period last year. Operating revenue increased 42% from a year ago to ₹1.02 trillion, while the Ebit margin increased 8.8 percentage points to 8.1% during 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 world.”
Due to a shortage of engineers in the nation, the Indian-owned JLR may need to hire staff from outside of Britain, according to the report.
The luxurious Jaguar Land Rover (JLR) cars are India’s largest carmaker by revenue, and on Tuesday, the company’s quarterly profit easily surpassed forecasts thanks to robust demand and progress in supply chain concerns.
70% of Tata Motors’ revenue came from the UK-based JLR unit, which has benefited from robust demand for its higher-margin SUVs like the Range Rover and an improving chip supply after severe shortages for several quarters.
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