Tata Motors reported better-than-expected first-quarter earnings as supply-chain constraints eased, serving to to carry gross sales of luxurious automobiles.

Internet earnings was 32 billion rupees ($391 million) within the three months by June, in contrast with a lack of 50 billion rupees a 12 months earlier, the Mumbai-based firm mentioned in a press release Tuesday.

Analyst estimates on common have been for web revenue of 24.5 billion rupees.

Luxurious unit Jaguar Land Rover posted a quarterly revenue earlier than tax of 435 million kilos ($559 million), in contrast with a lack of 524 million kilos the 12 months earlier than.

JLR’s quarterly income surged 56 % to six.9 billion kilos, Tata mentioned.

The automaker reported a free money circulate of 451 million kilos.

JLR delivered its “highest manufacturing ranges in 9 quarters and our highest first quarter cashflow on document,” CEO Adrian Mardell mentioned.

JLR had already mentioned its quarterly wholesale volumes climbed 30 % from a 12 months earlier to 93,253 items, excluding its China three way partnership Chery Jaguar Land Rover, reflecting “persevering with enchancment in chip and different provide constraints.”

Retail gross sales in China jumped 40 %, whereas they have been flat in Europe.

JLR’s second-quarter manufacturing and cashflow will possible be decrease as a result of annual summer time plant shutdown, whereas wholesales and revenue are anticipated to be extra in step with current quarters, in response to the submitting.

Tata mentioned it can cancel its Class A shares and difficulty bizarre ones in return, topic to regulatory approvals, to simplify and consolidate its capital construction and protect liquidity for progress.

The plan will result in a 4.2 % discount within the variety of excellent shares, making it “worth accretive” for shareholders, the corporate mentioned.

A 4-billion-pound battery plant within the U.Okay., to be constructed by Tata Group, will help the electrification targets of JLR and Tata Motors, with provides ranging from 2026. The power can also be a lift for the U.Okay.’s automotive manufacturing business, which has struggled with Brexit and the change to electrical automobiles.

JLR goals to speculate 15 billion kilos over the following 5 years in growing EVs and autonomous-driving options. It’ll start promoting a spread of full-electric fashions from 2024.

Tata Motors, a pacesetter in EVs in India, will make investments $2 billion in battery fashions by 2027.