Mumbai: Net profit at Tata Motors surged more than two-folds – 137% in the December quarter over the year-ago-period driven by a strong operational performance at the company’s UK subsidiary Jaguar Land Rover and domestic business. The earnings beat Street estimates.

India’s most valuable automaker saw its net profit in the December quarter increase to ₹7,025 crore compared to ₹2,958 crore in the year-ago period. Net revenues during the three-month period also rose 25% to ₹1,09,799 crore over ₹87,783 crore over the corresponding period last year.

“All our businesses executed well on their differentiated strategies and delivered a strong set of results for the quarter, thereby making it six quarters of consistent delivery,” said PB Balaji, group chief financial officer, Tata Motors.

Commenting on the fundraising plans for the EV business – Passenger Electric Mobility (TPEML) – he said with proceeds from the Production Linked Incentive (PLI) Scheme likely to come soon, Tata Motors is not in a rush to raise funds for its EV arm.

The country’s largest EV maker with a 72% marketshare, is well capitalised at the moment, with $1 billion of the planned $2 billion already raised. A rising scale, falling battery prices and the expected PLI benefits which is likely to fund 13% to 18% of vehicle costs have also helped, he added.

Meanwhile, TPEM is already Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda)-break even before product development investment, said Balaji. TPEM is a leader in the e-passenger car market with a market share of 72%.Overall, Tata Motors expects to end the year on a strong footing and remains confident of sustaining its performance in the coming quarters and delivering on its deleveraging plans, he added.Consolidated net debt at the Mumbai-headquartered firm at the end of December quarter reduced to ₹29,200 crore against ₹38700 crore in the September quarter. Of this, while JLR’s share of debt stood at ₹16,600 crore, India business contributed at ₹3,500 crore. TML Holdings and other subsidiaries accounted for the rest.

Revenue at JLR for the quarter was £7.4 billion, up 22% YoY. The company’s EBIT margin was at 8.8%, more than doubling from 3.7% a year ago.

Led by a strong volume run of the Land Rover Defender sales of which increased to 52,900 units from 40,200 units in the comparable period a year ago, dispatches at JLR in the three months to December rose to 101,000 units from 79,600 units in the corresponding period last year.

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