 "Tata Motors dips on disappointing Q4 results")
Shares of Tata Motors dipped almost 7% to Rs 463 on the NSE in early morning trades after the company reported lower-than-expected consolidated net profit at Rs 1,717 crore for the fourth quarter ended March 31, 2015 (Q4) on account of lower-than-expected operating performance at Jaguar Land Rover (JLR) and mark-to-market (MTM) loss provisioning at JLR (on commodity hedges and revaluation of foreign currency debt).
The company had reported net profit of Rs 3,918 crore in the year-ago quarter.
Bloomberg had estimated Tata Motors to report a net profit of Rs 4,092 crore for the quarter.
Consolidated revenue increased 3.5% from a year ago to Rs 67,576 crore in the quarter due to increase in wholesale volumes and richer product mix both in the standalone business and JLR, Tata Motors said in a statement.
“JLR margins at 17.4% were lower than our estimate of 19.2% which dragged the overall margin performance. Also, JLR realized MTM loss on commodity hedges and revaluation of foreign currency debt to the tune of GBP 220 million (about Rs 2,100 crore), which further dented profitability”, said Angel Broking in a client note.
At 0920 hours, the stock was down 6% at Rs 470 on the NSE.
The company had reported net profit of Rs 3,918 crore in the year-ago quarter.
Bloomberg had estimated Tata Motors to report a net profit of Rs 4,092 crore for the quarter.
Consolidated revenue increased 3.5% from a year ago to Rs 67,576 crore in the quarter due to increase in wholesale volumes and richer product mix both in the standalone business and JLR, Tata Motors said in a statement.
“JLR margins at 17.4% were lower than our estimate of 19.2% which dragged the overall margin performance. Also, JLR realized MTM loss on commodity hedges and revaluation of foreign currency debt to the tune of GBP 220 million (about Rs 2,100 crore), which further dented profitability”, said Angel Broking in a client note.
At 0920 hours, the stock was down 6% at Rs 470 on the NSE.