Jaguar Land Rover Automotive Plc reported its first profit in four quarters, overcoming a continued sales slump in China and raising optimism that Britains largest automaker is finally on the mend.

Net income was £119 million ($151.6 million) in the three months ended March, according to a statement on Monday, while profit before tax, excluding exceptional items, was £269 million. It was an improvement from the record £3.1 billion loss posted at the end of 2018 that shocked investors, a misfortune that spilled over to JLRs Indian parent, Tata Motors Ltd.

While the latest results are encouraging for JLR, its struggles in China persist as sales tumbled 46 per cent in April, raising questions as to how long the Indian parent will hang on to what was once its crown jewel. Tata Group is exploring strategic options for the luxury brand, including a potential stake sale, people familiar with the matter have said.

Though JLR is not the only carmaker suffering in China lately, the market is going through its longest slump in a generation, its not the only challenge its facing. JLR is particularly vulnerable due to the shift away from combustion and diesel engines, and its strong historic links to the UK, have fuelled concern over what a disruptive Brexit could bring.

The US-listed shares of Tata Motors rose 10 per cent in pre-market trading. Jaguars bonds rose on the back if its fourth-quarter results, with its euro-denominated notes with a shorter maturity, gaining the most traction on the news. The bond was bid as low as 75 cents on the euro in February when the company said conditions were not right for it to borrow from the bond market, and was seeking alternative funding.

Since 2018, the company has had its junk credit rating cut three times by S&P Global Ratings and the automaker is eliminating 4,500 jobs.

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