Jaguar Land Rover expects free cash flow of over 800 million pounds (about $1 billion) for the quarter ending March 31, boosted by a 24 percent rise in wholesale volumes as chip and other supply constraints eased, the luxury carmaker said on Thursday.
Tata Motors, which acquired the UK automaker in 2008, had set a target of 1 billion pounds of free cash flow for the fiscal year.
JLR said wholesale volumes, excluding its China joint venture, rose 24 percent, while retail sales grew 30 percent in the fourth quarter.
Wholesale volumes in China, JLR’s biggest market, rose 17 percent compared with a 13 percent drop in the previous quarter, the company said.
Its total order book at March-end was 200,000 units, down 15,000 units from Dec. 31, reflecting higher retail sales in the fourth quarter, JLR said, adding that it saw demand for Range Rover, Range Rover Sport and Defender models.
JLR’s performance is key to Tata Motors as it contributes nearly 60 percent to the group’s revenue from operations.
Last quarter, Tata Motors returned to profit for the first time in two years on rising demand for JLR cars and the easing of semiconductor chip supplies.
JLR expects to report results for the latest quarter in May.