Tata Motors shares down 4%; mcap dips by Rs 5095 cr

  • Tata Motors shares down 4%; mcap dips by Rs 5095 cr

Tata Motors shares down 4%; mcap dips by Rs 5095 cr

Analysts had expected a net profit of Rs1,499 crore. Revenue grew more than 11% to 701.56 billion rupees.

Our price estimate for Tata Motors is $36.77. The second-quarter retail sales at JLR grew 5% to 1.49 lakh units, with its top market China clocking an increase of 27%.

A strong show from the company-owned luxury auto brand Jaguar Land Rover (JLR) and improved results in its domestic business from its passenger vehicle and commercial vehicle divisions, is proving that its three-pronged "attack" game-plan has made the right moves. "Think about Brexit, think about the U.S. at the current moment", he said.

JLR's earnings before interest, taxes, depreciation and amortisation stood at 11.8%, surpassing a 10.6% estimation, according to a Bloomberg's analyst survey. The company said it plans to spend 4 billion pounds in JLR this fiscal year to boost capacity and launch new products.

Ralf Speth, Jaguar Land Rover's chief executive officer, said: "We have delivered solid growth in quarterly profit and revenues amid rising demand for our award-winning products".

Government funding in infrastructure development and restrictions on overloading with a higher demand for high-tonnage vehicles also helped to push the sales.

The company's MD & CEO Guenter Butschek has been aggressively making efforts to turn the India business around and the strategy seems to be delivering.

Separately, cost reduction measures and higher sales volume of heavy and medium commercial vehicles and passenger cars helped the domestic business narrow its net loss to ₹295 crore, from ₹631 crore a year earlier.

"After a challenging first quarter, Tata Motors has demonstrated impressive results with month-on-month growth in sales and market share, enabled by a slew of new product launches and customer centric initiatives".

With Q1 performance below expectations, Tata Motors witnessed a month-on-month growth in sales and market share in Q2 outperforming the industry and reaching highest sales in September 2017 in PV since November 2012 and in CV since June 2014.