Tata Motors Ltd on Friday topped Street estimates when its net profit more than doubled for the quarter ended December 31, led by a strong performance from Jaguar Land Rover (JLR).

Consolidated net profits of the company jumped to Rs 7,025.11 crore compared with Rs 2,957.71 crore in the corresponding period of last year.

Analysts had forecast a consolidated net profit of around Rs 4,500 crore. A good showing from its commercial vehicle division also contributed to the numbers. The quarter saw its revenues rising to Rs 109,799.22 crore from Rs 87,783.21 crore in the last year, an increase of 25 per cent.

During the quarter, JLR posted record revenues of nearly £7.4 billion, which marked a 22 per cent rise over £6.04 billion in the same quarter of the previous year.

Earnings before interest and taxes (EBIT) showed a rise of 510 basis points at 8.8 per cent compared with 3.7 per cent in the year-ago period. The subsidiary’s profit before tax jumped to £627 million from £265 million in the corresponding period of last year, thus displaying a growth of 137 per cent. This was its highest number since the fourth quarter of 2016-17.

JLR said the higher profitability over the previous year was a result of favourable volumes and reduced chip costs, offset partially by unfavourable fixed marketing, administration and forex revaluation.

The company forecast that its EBIT margin for the current fiscal will be over 8 per cent and that its operating cashflow will support the net debt of less than £1 billion by the end of 2023-24.

“We have delivered a further outstanding financial performance in quarter three, with our best quarterly profit for seven years and our highest ever revenue for the first nine months of a financial year. Sales of our modern luxury vehicles hit new records in the quarter and we are excited about the strong client interest for our soon-to-launch Range Rover Electric,” Adrian Mardell, JLR chief executive officer, said.

The company’s commercial vehicles segment’s revenues grew more than 19 per cent.

Revenues of Tata Commercial Vehicles (Tata CV) stood at Rs 20,100 crore compared with Rs 16,900 crore in the year-ago period. While its earnings before interest, taxes, depreciation & amortisation margins showed a growth of 270 basis points during the same period to 11.1 per cent, profit before tax was at Rs 1,700 crore against Rs 900 crore in the same period of 2022.