Tata Motors rose 1.51% to Rs 537 at 10:14 IST on BSE on reports the company's British luxury car unit Jaguar Land Rover concluded a deal on pay and pensions with union representatives, after revising the offer.
Meanwhile, the BSE Sensex was down 16 points, or 0.06%, to 28,428.01.
On BSE, so far 1.18 lakh shares were traded in the counter, compared with an average volume of 4.47 lakh shares in the past one quarter.
The stock hit a high of Rs 538.60 and a low of Rs 534.85 so far during the day. The stock hit a record high of Rs 550.80 on 18 November 2014. The stock hit a 52-week low of Rs 331.05 on 4 February 2014.
The stock had underperformed the market over the past one month till 2 December 2014, falling 1.24% compared with 2.07% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 2.44% as against Sensex's 5.27% rise.
The large-cap company has an equity capital of Rs 547.34 crore. Face value per share is Rs 2.
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According to reports, Jaguar Land Rover Automotive Plc (JLR) will give a pay hike of 4.5% in the first year of a two-year deal, plus a bonus of 825 pounds per employee. In the second year, workers will get the higher of either 3% or Retail Price Index measure of inflation plus 0.5%.
The Tata Motors-owned JLR was reportedly facing threats of industrial action after the unions rejected the management's pay offer last month.
Reports suggest that the latest pay deal with union is a positive move ahead of critical model launches like the Jaguar XE, but a higher pay to workers might impact earnings. Tata Motors draws three-fourths of its revenue and all its profit from the British unit, reports suggested.
Meanwhile, on Tuesday, 2 December 2014, Jaguar Land Rover announced that it started construction of its 750 million reais state-of-the-art manufacturing facility in the state of Rio de Janeiro (Brazil) and confirmed plans to build its first overseas Education Business Partnership Centre there.
Jaguar Land Rover is the first British automotive company to invest in a manufacturing factory in Brazil. In the programme's first phase, the new manufacturing facility in Itatiaia will employ 400 people and will have an annual capacity of around 24,000 vehicles.
Jaguar Land Rover has had a presence in the Brazilian market for more than 20 years. Jaguar Land Rover is investing in its dealer network in Brazil and, by the end of March 2015, it will have 42 dealers covering all of the main territories. Brazil is one of Jaguar Land Rover's top ten markets and the Range Rover Evoque, Range Rover Sport and Land Rover Discovery are the strongest selling vehicles in the country.
Tata Motors on Tuesday, 2 December 2014, announced that it has received an order for 1542 SUMO GOLD utility vehicles from various Police & law enforcement agencies across the country. As one of the country's largest selling utility vehicles, the Sumo Gold is one of the most powerful entry-level utility vehicles, conceived keeping in mind comfort and robust all-round performance. With peak power of 85PS@3000 rpm, the Sumo Gold provides fuel economy of about 15 kmpl, best-in-class ground clearance of 182 mm, a rugged un-matched drive experience, with lowest cost of ownership - a critical partner for law enforcement agencies across the country, the company said in a statement.
Tata Motors said its total sales rose 2.09% at 41,720 units in November 2014 over November 2013. Domestic sales of Tata commercial and passenger vehicles for November 2014 at 37,427 units remained flat. Tata Motors' total exports jumped 17% to 4,293 units in November 2014 over November 2013. The company's sales of commercial vehicles in the domestic market declined 5% at 25,406 units in November 2014 over November 2013. Sales of medium and heavy commercial vehicles (M&HCV) jumped 39% at 9,452 units in November 2014 over November 2013. Sales of light commercial vehicles (LCVs) fell 20% at 15,954 units in November 2014 over November 2013. The trend of growth in passenger vehicles continued, with the strong Zest and Nano sales in November 2014, Tata Motors said. The sales numbers were announced after market hours on Monday, 1 December 2014.
On consolidated basis, Tata Motors' net profit declined 7.1% to Rs 3290.86 crore on 8% growth in net sales to Rs 60163.99 crore in Q2 September 2014 over Q2 September 2013.
Tata Motors is India's largest automobile company, with consolidated revenues of Rs 2,32,834 crore ($38.9 billion) in 2013-14. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 8 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top in passenger vehicles. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia.
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