Tata Motors on Wednesday reported a lower consolidated loss of Rs 944.61 crore for the quarter ended September 30, on higher margins at Jaguar Land Rover (JLR). The homegrown auto major had recorded a loss of Rs 4,441.57 crore in the year ago period and a net loss of Rs 5,006.60 crore in the preceding quarter. During the period, revenues rose to Rs 78,846.92 crore from Rs 60,435.92 crore in the corresponding period of the previous year.

A consensus estimate of analysts tracked by Bloomberg had estimated loss at Rs 1,548 crore. The narrowing of its losses came as JLR reported revenues of £5.3 billion, a gain of 36 per cent over £3.9 billion in the same period of the previous year. Profitability and cashflow improved with positive EBIT (earnings before interest & taxes) margin of 1 per cent against a negative 4.7 per cent last year and cashflow near breakeven. Loss before tax moderated to £173 million from £302 million in the year ago period.

A Tata Motors statement said JLR was continuing to focus on signing long-term partnership agreements with chip suppliers to improve availability. Production and sales volumes will improve with positive profit margins and cash flows expected in the second half of this fiscal. Free cashflow will likely be near breakeven for the full financial year, the company said. “We delivered a stronger financial performance in the second quarter as we ramped up production of our new Range Rover and Range Rover Sport. Despite continuing semiconductor constraints, we improved revenue, margins and cash flow,” JLR CEO Thierry Bolloré said.

“Demand for our most profitable and desired vehicles remains strong and we expect to continue to improve our performance in the second half of the year, as new agreements with semiconductor partners take effect, enabling us to build and deliver more vehicles to our clients.’’ On a standalone basis, Tata Motors reported a loss of Rs 292.59 crore against a loss Rs 181.03 crore in the preceding three months and Rs 659.33 crore in the same quarter of the previous year.

Revenues rose to Rs 14,850.97 crore from Rs 10,890.06 crore. Revenues of the commercial vehicle rose 35.5 per cent to Rs 1,640 crore with EBIT margins rising 260 basis points. Sales jumped 19 per cent led by stronger sales of medium and heavy commercial vehicles and a robust recovery in passenger carriers demand.