Tata Motors has slipped by 2% at Rs 415 on the BSE after missing estimates by a huge margin, reporting a consolidated net profit of Rs 3,918 crore for the reporting quarter, a drop of 0.68% from Rs 3,945 crore in the same quarter last year.
Analysts expected the net profit to be in the range of Rs 4,600 crore but due to a larger-than-expected erosion in profits at the stand-alone level, the overall performance got severely hit.
Struggling domestic operations resulted in an almost unchanged consolidated net profit of Tata Motors in the quarter ended March, despite a stellar performance by its subsidiary Jaguar Land Rover.
The company’s local unit posted its sixth straight quarterly operational loss at Rs 816 crore for the reporting period as sales of passenger and commercial vehicles nosedived. Net loss in the same quarter last year stood at Rs 312 crore.
C Ramakrishnan, chief financial officer, said, “The India business continues to face tough market conditions. Sustained deceleration in economic growth leading to weak consumer sentiment, high inflation, high fuel prices, reduced availability of finance and an elevated interest regime continues to impact the demand for the entire auto industry in general and commercial vehicles in specific.”
The shares had opened at Rs 413 and have touched a high of Rs 417 and a low of Rs 407 thus far.
