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Tata Motors extends post result gains

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Capital Market
Last Updated : Aug 30 2016 | 12:01 AM IST

Tata Motors rose 4.47% to Rs 526.15 at 14:30 IST on BSE, with the stock extending gains registered during the previous trading session in the wake of the announcement of Q1 June 2016 results.

Meanwhile, the BSE Sensex was up 66.27 points, or 0.24%, to 27,848.52.

On BSE, so far 15.02 lakh shares were traded in the counter, compared with average daily volume of 8.92 lakh shares in the past one quarter. The stock hit a high of Rs 528.05 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 515.80 so far during the day. The stock hit a 52-week low of Rs 266 on 11 February 2016. The stock had outperformed the market over the past 30 days till 26 August 2016, sliding 0.43% compared with 1.51% slide in the Sensex. The scrip had also outperformed the market in past one quarter, rising 24.82% as against Sensex's 4.23% rise.

The large-cap company has equity capital of Rs 577.44 crore. Face value per share is Rs 2.

The Q1 result was announced during market hours on Friday, 26 August 2016, when the stock settled 2.01% higher at Rs 503.65. The stock has risen 6.56% in two trading sessions from its close of Rs 493.75 on Thursday, 25 August 2016.

Tata Motors' consolidated net profit declined 57.25% to Rs 2236 crore on 9.01% growth in revenue to Rs 67056 crore in Q1 June 2016 over Q1 June 2015. Tata Motors said that higher volumes in both standalone as well as Jaguar Land Rover (JLR) business was more than offset by the adverse foreign currency impact of Rs 2296 crore and adverse commodity derivatives impact of Rs 167 crore in the operating profit mainly in the Jaguar Land Rover business. The profitability was also adversely impacted by lower local market incentive in the JLR business as compared to the corresponding quarter last year and higher depreciation and amortization expenses as compared to the corresponding quarter last year.

Tata Motors attributed the increase in top line during the quarter to strong sales from Jaguar Land Rover (JLR) business and continued volume growth in M&HCV segment and the LCV segment.

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Meanwhile, Tata Motors board approved raising funds aggregating Rs 3000 crore by way of issue of secured/unsecured debentures and/or bonds in one or more tranches, from time to time.

Tata Motors is a market leader in commercial vehicles in India. The company's British unit JLR sells premium luxury cars.

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First Published: Aug 29 2016 | 2:26 PM IST

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