Monday, October 3, 2022

Tata Motors dives 26 Year low on Sensex, Steel brings respite

Must read

New Delhi: Tata Motors Ltd’s share price slumped as much as 29.5 percent to Rs 129, its biggest intraday fall since February 1993. Many brokerages downgraded the stock and reduced its target price after the company posted its biggest-ever quarterly loss in Indian corporate history because of an impairment charge for its Jaguar Land Rover unit. The scrip was trading at Rs 155.15 on the National Stock Exchange at 10 am, down 15.2 percent from its last close while the country's benchmark Sensex reduced 0.5 percent to 36,792.38 points.

The third-quarter loss of Rs 26,992.54 crore

Tata Motors reported a consolidated loss of Rs 26,992.54 crore mostly due to a massive impairment at JLR. The write-off has been attributed to slowing sales in China, the rising cost of debt, along with technology disruptions linked to a shift towards eco-friendly hybrid and electric vehicles. Indian Oil Corp had reported a loss of Rs 22,450 crore for June 2012 quarter.

In the December quarter, Tata Motors’ consolidated revenue grew 4.4 percent to Rs 77,582.71 crore, compared to Rs 74,337.70 crore a year ago, while JLR’s sales dropped 6.4 percent year-on-year to 144,600 vehicles. Last quarter, sales in China went down 47 percent y-o-y offsetting a 21 percent and 18.4 percent increase in North America and the United Kingdom respectively.

Strong domestic production helps steel rising

Helped by robust domestic production, Tata Steel Ltd posted a 54.31 percent year-on-year surge in profit at Rs 1,753 crore for the quarter ended December, falling short by Rs 2,289 crore net estimated by analysts. In the same time last year, the company had reported Rs 1,136 crore profit. The company’s consolidated revenue for the quarter rose 23 percent y-o-y to Rs 41,220 crore, with its domestic sales increasing 41 percent to Rs 22,063 crore, it said in a regulatory filing. Compared with Rs 5,671 crore in the same quarter last year, consolidated adjusted Ebitda shot up 27 percent to Rs 7,225 crore. The group’s liquidity position stayed robust at Rs 19,320 crore, including Rs 8,549 crore in cash and cash equivalents and Rs 10,771 crore in undrawn bank lines, said the company.

- Advertisement -

More articles

- Advertisement -

Latest News