Tata Motors dips 10% from day's high as JLR eyes negative EBIT margin in Q2

In Q1, JLR's wholesales were lower than demand would have permitted due to semiconductor supply issues affecting the global auto industry

Shares of Tata Motors declined 10 per cent from the day's high of Rs 358.10 and were quoting 7 per cent lower at Rs 323 on the BSE in intra-day trade on Tuesday after its UK subsidiary Jaguar Land Rover (JLR) said it expects an operating cash outflow of about £1 billion, with negative earnings before interest tax (EBIT) margin in the second quarter ended September 2021 (Q2FY21), due to the supply constraints.

However, JLR added that it sees a substantial improvement in underlying operating cash flow in the second half of the financial year as chip supply improves.

JLR retail sales