Tata Motors’ subsidiary Jaguar Land Rover (JLR) reported net profits of £351mn ($481mn) up from the £117mn ($160mn) in the quarter ended September while the parent reported a 67% jump in its consolidated net profits. JLR also reported a positive free cash flow of £562mn ($769mn), a record for the company in the December quarter and up 21% from the same period last year. EBITDA margins also improved to 11.6% from 9.8%. Cash and short-term investments increased to £4.5bn ($6.2bn) as a result of the positive free cash flow and $1.35bn of debt via 5Y and 7Y bonds issued in the quarter. Total liquidity stood at £6.4bn ($8.8bn) including a £1.9bn ($2.6bn) undrawn credit facility. Sales from China and EV sales boosted results – 12% of sales were either battery electric vehicles (BEV) or plug-in hybrids (PHEV). “I am encouraged by the improved financial performance in this first full quarter”, said CEO Thierry Bollore.
JLR’s bonds have been trading higher by 7-10 points over the past six months with USD 4.5% 2027s trading at 97.6 and its EUR 2.2% 2024s at 96.50 currently.
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