Domestic automobile company Tata Motors reported a net profit of Rs 2,941.48 crore in the third quarter ended December, of the current financial year. This is 67.52 percent more than Rs 1,755.88 crore in the year-ago quarter.
The company told Share Market that its total revenue during the quarter was Rs 75,653.79 crore as compared to Rs 71,676.07 crore a year ago. The company incurred a loss of Rs 638.04 crore in the third quarter of the current financial year on a single basis. It was Rs 1,039.51 crore in the year-ago period. However, on a single basis, revenue increased to Rs 14,630.60 crore as compared to Rs 10,842.91 crore.
Jaguar Land Rover, the British unit of the company, received a pre-tax profit of £ 43.9 million during this period. This profit was 12.1 million pounds in the year-ago quarter.
Company increased vehicle prices
Tata Motors has recently increased the price of its passenger vehicles (Price Hike). The company has taken this step due to increase in production cost and increase in semiconductor prices. Tata Motors said in a statement sent to the stock markets on Friday, “Due to the increase in the cost of production, increase in the prices of steel, precious metals and semiconductor, the company has to bear some of its burden on customers.” Vehicle companies like Maruti Suzuki and Mahindra & Mahindra have also increased prices. Tata Motors said that it has increased the price of its various models from zero to 26,000 rupees.
Strong demand for Forever Series cars and SUVs
Tata Motors currently sells hatchback Tiago in the passenger vehicle segment, from TATA Harrier. The price in the Tiago’s Delhi showroom is Rs 4.7 lakh. At the same time, the price of Harrier is Rs 19.1 lakh. The company said that its passenger vehicle business is seeing strong demand for new Forever series cars and SUVs. In the financial year 2020-21, their demand has increased by 39 percent compared to the previous financial year.