Jaguar Land Rover reports rising revenues and return to profit in Q3

Jaguar Land Rover reported an 8% rise in revenues to £6.1bn over the second quarter and a return to profit.

It also posted a smaller-than-expected loss for the second quarter on Friday thanks to a pick up in sales of its luxury cars in China which helped to balance out weak sales in India.

Total retail sales were down slightly (-0.7%), but its performance in China improved by 24.3%.

Improved sales for JLR are an indication of a recovery for the iconic British brand, which had been hit by the necessary switch from diesel cars towards cleaner fuels in markets including China and Britain.

Pre-tax profit reached £156m, that was £246m better than a year ago and the company's EBIT margin hit 4.8%.

The manufacturer also reported an operating cash outflow of £64m, but on the back of £841m of investment spending, which represented an improvement of £559m on the prior year quarter.

“This is testament to the fundamental strength of our business, our award-winning products, new technologies and operating efficiencies,” said the company on Friday.