Tata Motors (NYSE:TTM), a leading automaker, reported its fourth consecutive quarterly profit on Thursday, with a net profit of Rs 37.64 billion ($452 million) in Q3. Although this was below the Rs 4,352 crore analyst estimate, it represented a substantial rebound from a Rs 945 crore loss in the previous year. The profit was predominantly driven by robust sales of high-end vehicles like Jaguar Land Rover (JLR), both at its China joint venture and in the UK-brand carmaker market.
The company's total revenue experienced a record-breaking increase of 32.1% to 1.05 trillion rupees, despite a minor 3% decline in passenger vehicle revenue. This was largely attributed to a significant 22.3% rise in commercial vehicle revenue from its India business, which accounts for two-thirds of the parent's revenue.
Moreover, there was an almost 90% surge in sales of JLR's top models such as the Range Rover, Range Rover Sport, and Defender. These models represented nearly 60% of total sales due to a 21% uptick in JLR retail sales.
These strong sales have resulted in an improvement in Tata's overall EBITDA margins to 13.7%. Consequently, the company has revised JLR's full-year EBIT forecast to around 8%.
This robust financial performance has positively impacted Tata Motors' shares, which increased by 1.4% ahead of results and have seen an impressive surge of 64% this year. This significantly outperforms the Nifty Auto index's growth of 26.5%.
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