Shares of Tata Motors surged 6% in intraday trade on Friday to hit a more than four-month high of Rs 444.60 on the BSE after the company posted a consolidated net profit of Rs 3,043 crore for the third quarter of the 2022-23 financial year (Q3FY23), after reporting losses for seven consecutive quarters. The company posted a net loss of Rs 1,452 crore in the quarter a year ago.

The stock has been trading at its highest level since September 16, 2022.

The healthy performance in the quarter was supported by solid orders, a better supply of semiconductor chips, moderating commodity prices, and a better product mix. The company’s total revenue rose 22.9% year-on-year to Rs 89,618 crore in the third quarter.

In the October-December quarter, JLR’s revenue was £6 billion, up 28% from a year earlier, reflecting better supply, a robust model mix and pricing, Tata Motors said. It added that pre-tax profit in the third quarter was £265 million, compared with a loss of £9 million a year earlier.

Tata Motors remains cautiously optimistic about the demand situation despite global uncertainties. The company will remain vigilant on demand and continue to focus on earnings growth, improving semiconductor supply and stable commodity prices, contributing to revenue growth, margin improvement and upbeat cash delivery in Q4FY23, the company said.

“The company continues to see strong demand for its vehicles. Tata Motors said Wholesale in China during the quarter was impacted by the lockdown that closed dealerships, followed by high staff absenteeism as Covid-19 restrictions eased.