Shares of Tata Motors went up by nearly 4 per cent today, defying disappointing earnings, driven by improved margins at its flagship British arm JLR.
Despite a negative opening, Tata Motors' scrip rose by 3.58 per cent to Rs 542.60 as the trade progressed at the BSE.
On the NSE, it jumped 3.64 per cent to Rs 543.
"Tata Motors Q2 FY15 results were in line with our estimates on the operating front even as higher taxation dragged profitability. JLR margins at 19.4% improved in-line with our estimate led by improved product mix," said Bharat Gianani, Senior Research Analyst - Automobile, Angel Broking.
Tata Motors' net profit fell by 7 per cent to Rs 3,291 crore in the second quarter on higher tax provisions and a steep decline in India sales, even as margins improved at its flagship British arm JLR.
The auto major had posted a consolidated net profit of Rs 3,541.86 crore in the September quarter of the last fiscal.
Revenue from the company's British unit Jaguar Land Rover (JLR) went up by 7.34 per cent to Rs 49,160.72 crore in the second quarter this fiscal, as against Rs 45,795 crore in the year-ago period.
JLR reported a massive spike in margin to 19.4 per cent from 15.3 per cent in the year-ago period.
