Tata Motors expects JLR to report £400 million positive cash flow

CHENNAI:  On the back of strong sales, Tata Motors expects its British subsidiary Jaguar Land Rover (JLR) to report positive free cash flow of over £400 million in the first quarter (Q1FY24) of the financial year 2024.

JLR on Friday reported its wholesale volumes for Q1 were 93,253 units (excluding Chery Jaguar Land Rover China JV), up 30% as against the same quarter a year ago. Wholesales were lower (down 1%) compared to the prior quarter ending March 31, 2023. Retail sales for Q1 were 101,994 units (including the Chery Jaguar Land Rover China JV), up 29% as against the same quarter a year ago. Retails were flat (down 1%) compared to the prior quarter ending 31 March 2023.

“Based on preliminary cash balances, JLR expects to report positive free cash flow of over £400 million in the quarter,” it said in a statement.  Following this announcement, Tata Motors shares erased early losses and touched an all-time high of `612.40 on Friday.

The stock has soared 42% this year. JLR added that its order book remained strong with over 185,000 client orders at quarter end, reducing from 200,000 on 31 March 2023 in line with expectations, as chip and other supply constraints continue to improve. JLR will report full financial results for Q1 later in July.