Jaguar Land Rover forecasts free cash flow for the third quarter this year at more than 400 million pounds ($485 million). It is announced after reporting a 15% rise in its wholesale volumes for the period on strong demand and improved chip supply. For its second quarter, the automaker forecasts a positive cash flow this year, with a “near breakeven” for the full year.
Tata Motors, which acquired JLR in 2008, had earlier set a target of 1 billion pounds of free cash flow for the fiscal year. Meanwhile, December quarter wholesales, excluding its joint venture in China, were up 15% from a year earlier at 79,591 units. Retail numbers for the three months ended Dec. 31, were up 5.9% on a year-on-year basis at 84,827 units.
The total order book at December-end rose by around 10,000 to 215,000 client orders from September 30. Jaguar said, adding that demand for the New Range Rover, New Range Rover Sport and Defender comprised 74% of the order book. JLR’s performance is key to India’s Tata Motors as it contributes nearly 60% to the group’s revenue from operations. However, wholesale volumes in China, Jaguar’s biggest market where it produces cars from Changshu, were down 13% compared to the previous quarter due to COVID-19 impact, Jaguar said in a statement.
The retail sales of automaker Jaguar Land Rover rose 5.9 per cent year-on-year (YoY) in the third quarter of the current financial year (Q3FY23) reflecting a “gradual improvement in chip supplies”, the company said in a BSE filing. The wholesale volume rose 15 per cent during the same period. The company also added that on a preliminary basis, the company’s free cash flow in Q3FY23 is likely to be over 400 million euros.
“Retail sales for the third quarter were 84,827 units, up 5.9 per cent compared to the same quarter a year ago,” the company said. It was, however, 3.7 per cent lower than the sales in Q2FY23. “Wholesale volumes were 79,591 units in the period (excluding the Chery Jaguar Land Rover China joint venture), up 5.7 per cent compared to the prior quarter ending September 30, 2022, and 15 per cent compared to the same quarter a year ago,” it added. The biggest jump, 17 per cent, was recorded in North America, followed by 13 per cent in the UK and 10 per cent “overseas”. The biggest fall in sales was recorded in China at 13 per cent. The company said that the volumes in China were impacted by Covid-19. “The Company continues to see strong demand for its vehicles. As of December 31, 2022, the total order book increased to 215,000 client orders, up to around 10,000 orders from September 30, 2022. Demand for the New Range Rover, New Range Rover Sport, and Defender remains strong and represents 74 per cent of the order book,” the company said.