Tata Motors jumps on buzz of large government contract

Tata Motors rose 4.42% to Rs 419 at 10:24 IST on BSE on reports the company won a government contract worth Rs 1120 crore for supplying 10,000 electric cars.

Meanwhile, the S&P BSE Sensex was up 169.30 points, or 0.54% to 31,453.02.

On the BSE, 3.49 lakh shares were traded in the counter so far, compared with average daily volumes of 52.60 lakh shares in the past two weeks. The stock had hit a high of Rs 428.25 and a low of Rs 418.50 so far during the day.

According to reports, the vehicles will be procured by state-owned Energy Efficiency Services (EESL) at a per-unit price of Rs 11.20 lakh and will lay the foundation for the government's ambitious plan for a mass shift to electric vehicles (EVs) by 2030. These e-cars will be procured in two phases; 500 will be supplied in November 2017 and the remaining 9,500 cars in the second phase, for which dates have not been declared yet.

Meanwhile, Tata Motors on Sunday, 1 October 2017, announced strong second-quarter growth driven by robust results for the third consecutive month. The sales performance for September 2017 were at 53,965 units resulting in 25% growth over last year for the domestic passenger and commercial vehicle business. This is at the back of growing festive demand across segments, increased positive customer sentiments, introduction of new products and strong customer engagement initiatives.

Tata Motors overall commercial vehicles sales in September 2017, in the domestic market were at 36,679 units, higher by 29% over September 2016. In September 2017, Tata Motors passenger vehicles, recorded sales of 17,286 units, growth of 18%, over September 2016.

The company's sales from exports was at 3887 units in September 2017, a decline of 27%, due to continued drop in TIV in Sri Lanka (by 54%) and Nepal (by 47%).

Tata Motors' consolidated net profit rose 41.6% to Rs 3199.93 crore on 10.02% decline in net sales to Rs 58493.37 crore in Q1 June 2017 over Q1 June 2016.

Tata Motors is a leading global automobile manufacturer of cars, utility vehicles, buses, trucks and defence vehicles. The company has operations in the UK, South Korea, Thailand, South Africa, and Indonesia through a strong global network of 76 subsidiary and associate companies, including Jaguar Land Rover in the UK and Tata Daewoo in South Korea.

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