Tata Motors (NYSE:TTM)' luxury segment, Jaguar Land Rover (JLR), inclusive of the Chery Jaguar Land Rover China JV, reported a strong second quarter in fiscal year 2024, with a 21% year-on-year increase in retail sales across all regions. The company attributed this growth to improved supplies, which led to sequential growth in both retail and wholesale volumes.
The retail volumes rose significantly worldwide during Q2 FY24. Overseas sales saw the highest jump with a 56% increase, followed by North America with a 32% rise. Europe, the UK, and China also witnessed substantial growth rates of 16%, 9%, and 7% respectively.
On the wholesale front, JLR reported an impressive figure of 96,817 units for Q2 and a total of 1.90 lakh units for the first half of FY24. This represents a 29% boost in wholesale volumes for the quarter.
The demand for Range Rover Sport and Defender models remained high throughout the quarter. The order book stood strong at 1.68 lakh units by the end of Q2.
Looking ahead, JLR expects a positive free cash flow of £300 million in Q2 FY24. The company's shares are currently trading strongly on NSE at Rs 619.40, marking a gain of 57% so far in 2023.
According to InvestingPro metrics, Tata Motors (TAMO) has been experiencing accelerated revenue growth, which aligns with their robust Q2 performance. This growth is expected to continue, with net income projected to grow this year. This is a testament to Tata Motors' strong position in the Automobiles industry, where it is a prominent player.
Despite the company's strong performance, it is worth noting that the stock's price movements can be quite volatile. This is reflected in the company's stock trading near its 52-week high, indicating potential risk for new investors. However, the company's high return over the last year and large price uptick over the last six months suggest that the risk may be worth the potential reward for some investors.
For those interested in exploring further, InvestingPro offers additional tips and insights into Tata Motors and other companies. With InvestingPro Tips, investors can gain access to real-time metrics and professional investment advice to help guide their decisions.
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