Tata Motors share price dive 6% on deep profit plunge
The group said its net profit for the quarter was at 11.17 billion rupees, lower than the 21.25 billion rupees a year ago.
Shares of Indian conglomerate Tata Motors took a nose dive on Tuesday, a day after the automaker reported a 47.4% decline in net profit from a year ago for the quarter ended March 31 as the firm struggles to lift sales for its luxury Jaguar Land Rovers in China and some other markets.
The group said its net profit for the quarter was at 11.17 billion rupees, lower than the 21.25 billion rupees a year ago.
Tata Motors share price
Tata Motors’ share price fell 11.15 rupees or 5.81%, to 179.10 rupees at around 11.40am Mumbai time on the National Stock Exchange of India.
The share price decline erased most of the gains the stock had made at the start of the year where it had traded at 173.45 rupees, posting a year-to-date 0.03% increase for the share price. The stock had the closing price of a high of 236.25 rupees last month.
Tata Motors earnings report highlights
The group posted a 3.9% dip in revenue for the quarter, at 856.76 billion rupees.
Tata Motors logged a net loss of 288 billion rupees for the year ended in March, due mostly to write-downs for its Jaguar Land Rover business.
Mr N Chandrasekaran, chairman of Tata Group said that the firm is viewing Jaguar Land Rover's difficulties in China as a priority, according to a Nikkei Asian Review report.
‘To weather the volatile external scenario, we are taking decisive steps to step up competitiveness, reduce break-even and improve cash-flows whilst continuing to invest in exciting products and leading-edge technologies,’ Mr Chandrasekaran said.
Jaguar Land Rover reported a record loss of 3.6 billion pounds for the 12 months ended March, as it dealt with a weak Chinese market, a one-off downward revision to the value of its business, and falling diesel sales.
Increased sales in Britain and the United States, meanwhile helped offset the slump in sale of those cars in China, the group said.
Even after excluding one-off, non-cash items, the company still made a pretax loss of 358 million pounds, with revenues down from 25.8 billion pounds in 2017 to 24.2 billion pounds.
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