Tata Motors Ltd.'s Jaguar Land Rover expects a positive free cash flow of £400 million in the quarter-ended June due to higher sales as supply chain issues ease.
Retail sales jumped 29% year-on-year to 1.02 lakh units in the first quarter, while wholesale sales rose 30% to 93,253 units. Both sales were down 1% sequentially.
Even as sales remain strong, the order book has declined to 1.85 lakh units from 2 lakh in the quarter-ended March, reflecting "continuing improvement in chip and other supply constraints".
The U.K.-based luxury carmaker reported a positive free cash flow of £815 million in the quarter ended March, with an EBIT margin of 6.5%. The quarter marked its strongest financial performance in several quarters.
Net debt stood at £3 billion as of March's end.
Under its Reimagine strategy, JLR aims to deliver free cash flow of £2 billion and revenue of £28 billion in the current fiscal. It also aims to become net-debt-zero by fiscal 2025.
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