Tata Motors shares slip as Q3 earnings fall steeply
Stock in Tata Motors slipped more than 3 per cent in early trade on Friday; a day after the Indian automobile giant reported a steep fall in quarterly earnings.
On Thursday, Tata Motors announced that its consolidated net profit for the October to December quarter slipped more than 50 per cent to Rs 1,628 crore, from Rs 3,406 crore in the corresponding period of the previous year.
On an average, analysts had projected a profit of Rs 2,770 crore in the December quarter for the company.
Net sales for the quarter under review jumped marginally to Rs 46,090 crore, up 1.8 per cent from the year-ago period.
Commenting on the figures, an analyst at Angel Broking said, "The top-line performance too was lower-than-expected due to unfavorable product-mix at Jaguar and Land Rover and standalone operations which resulted in a sequential decline in net average realization."
Jaguar and Land Rover (JLR) contributed to 94 per cent of Tata Motors' consolidated profit in the October to December quarter, up from 84 per cent for the corresponding period of last year.
In opening trade today, the stock traded lower by 3.1 per cent at around Rs 288 a share on BSE.