Tata Motors on Wednesday reported a consolidated net profit of Rs 3,043 crore in the December quarter, its first profit in two years, on account of robust sales.

The Mumbai-based auto major had reported a net loss of Rs 1,451 crore in the October-December quarter of the previous fiscal.

Total income increased to Rs 88,489 crore in the period under review from Rs 72,229 crore in the year-ago period, Tata Motors said in a regulatory filing.

On a standalone basis, Tata Motors reported a net profit of Rs 506 crore in the third quarter, a jump of over twofold, from Rs 176 crore in the October-December period of 2021-22.

The company said it remains cautiously optimistic about the demand situation despite global uncertainties.

“We will remain vigilant on demand and our continued focus on profitable growth, improving semiconductor supplies and stable commodity prices will aid revenue growth, margin improvement and positive cash delivery in Q4 FY23,” it added.

In the October-December quarter, Jaguar Land Rover revenues stood at £6 billion, up 28 per cent compared with the same period last year, reflecting better supplies, strong model mix and pricing, Tata Motors said.

Profit before tax in the third quarter stood at £265 million, against a loss of £9 million a year ago, it added. Wholesales in China during the quarter were impacted by lockdowns leading to dealer closures followed by high rates of staff absence as Covid-19 restrictions were relaxed.

The situation is expected to recover in the fourth quarter with dealers open and staff absence closer to normal levels in January.

“JLR has returned to profit as chip shortages eased in the quarter and production and wholesales increased,” Jaguar Land Rover interim chief executive officer Adrian Mardell noted.

The company said its passenger vehicle business continued its strong momentum in the third quarter with wholesales growing at 33 per cent year on year.

The business witnessed the highest-ever retail sales at 1,39,000 units, it added.

“Going forward, we remain vigilant about the evolving demand and supply situation and will stay nimble to take necessary actions swiftly whilst focusing on improving profitability further,” Tata Motors Passenger Vehicles managing director Shailesh Chandra said.

The company said the commercial vehicles industry witnessed a robust recovery in the third quarter led by strong demand in the MHCV and passenger carrier segment. “Realisation improvement coupled with commodity softening and cost control resulted in improved margins.

“Going forward, we will maintain our agility and keep a close watch on the evolving geopolitical, inflation and interest rate risks on both supply and demand,” Tata Motors executive director Girish Wagh said.

Shares of the company on Wednesday ended 0.73 per cent down at Rs 419 apiece on the BSE.