Shares of Tata Motors surged over 2% on Tuesday ahead of its earnings that came out after market close.

What Happened: The Tata Group company‘s net profits for the June quarter came in at ₹3,089.7 crore as against a loss of ₹4,987.01 crore it booked in the same quarter last year. The number beat street estimates of around ₹2,600 crore.

The company’s revenue from operations for the April-June period stood at ₹1.2 lakh crore, up 42.1% from the year-ago period. EBITDA for the period came in at ₹13,218.4 crore. EBITDA margin was at 13%.

Jaguar Land Rover‘s revenue for the quarter came in at £6,903 million (around ₹71,395 crore) up 57% year-on-year. The commercial vehicle segment’s revenue came in at ₹16,991 crore, up 4.4% YoY and the passenger vehicle segment’s revenue stood at ₹12,839 crore up 11.1% YoY.

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Going forward, the company said that it remains optimistic about the demand situation despite near-term uncertainties and expects a moderate inflationary environment to continue in the near term.

For JLR the company said, “Q2 production and cashflow is expected to be lower than Q1 reflecting the annual summer plant shutdown while wholesales and profitability are expected to be more in line with recent quarters.”

For CVs, the automobile giant said, “We expect demand to sequentially improve in FY24. The promising monsoon and continuing infrastructure thrust by the Government auger well for the CV industry, even as it faces the headwinds of high-interest rates, fuel prices and inflation.”

For PVs, the company said that demand was robust in the June quarter driven by new launches in SUV and EV segments. “Going forward, we expect the demand to remain steady with the onset of the festive season whilst the electrification trend is set to strengthen further.”

Price Action: Tata Motors’ share price was up 1.99% to close at ₹641.80 on Tuesday.

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