Tata Motors' shares jump 4% despite weak earnings
Mumbai: Shares of Tata Motors went up by nearly 4 per cent today, defying disappointing earnings, driven by improved margins at its flagship British arm JLR.
Despite a negative opening, Tata Motors' scrip rose 3.58 per cent to Rs. 542.60 as the trade progressed at the BSE. On the NSE, it jumped 3.64 per cent to Rs. 543.
“Tata Motors Q2 FY15 results were in line with our estimates on the operating front even as higher taxation dragged profitability. JLR margins at 19.4 per cent improved in-line with our estimate led by improved product mix,” said Bharat Gianani, Senior Research Analyst — Automobile, Angel Broking.
Tata Motors' net profit fell 7 per cent to Rs. 3,291 crore in the second quarter due to higher tax provisions and a steep decline in domestic sales, even as the margins improved at its flagship British arm JLR.
The auto major had posted a consolidated net profit of Rs. 3,541.86 crore in the September quarter of last fiscal.
Revenues from the company's British unit Jaguar Land Rover (JLR) went up 7.34 per cent to Rs. 49,160.72 crore in the second quarter of this fiscal from against Rs. 45,795 crore in the year-ago period.
JLR reported a massive spike in margin to 19.4 per cent from 15.3 per cent in the year-ago period.