BackTata Motors shares soar over 8% after June quarter results
On the BSE, Tata Motors stock jumps by 8.30% to touch Rs113.40; and on the NSE 8.45% to Rs113.50
PremiumNEW DELHI : Shares of Tata Motors Ltd on Monday soared more than 8% after the company reported better-than-expected quarterly earnings.
On the BSE, the Tata Motors stock jumped by 8.30% to touch Rs113.40. It rose 8.45% to Rs113.50 on the NSE.
According to a report by Edelweiss Research, Tata Motors continues to outperform on balance sheet as well as cost control initiatives.
The auto major on Friday reported a consolidated net loss of Rs8,443.98 crore for the first quarter ended 30 June 2020.
Total income from the operations during the June quarter of fiscal year 2021 stood at Rs31,983.06 crore, compared with a loss of Rs61,466.99 crore a year earlier.
Tata Motors’ wholesales (including exports) declined 81.5% to 25,294 units during the June quarter.
“The COVID-19 pandemic has deeply impacted the auto industry in the first quarter of the current fiscal. Post a calibrated restart at all plants in mid-May, we gradually scaled up our capacity while prudently safeguarding the health and wellbeing of our employees as well as the larger ecosystem," Tata Motors CEO and MD Guenter Butschek said in a statement on Friday.
“We have witnessed some green shoots emerging in the passenger vehicle segment owing to some pent up demand pre COVID-19, and are hopeful for a full recovery of the CV (commercial vehicle) industry by end of the fiscal year, with a gradual pickup of demand, aligned to the economic recovery," Butschek added.
Tata Motors-owned luxury carmaker Jaguar Land Rover (JLR) posted a pre-tax loss of 413 million pounds in the first quarter of the 2020-21 fiscal.
The automaker has warned that JLR may post another quarterly loss also as the coronavirus crisis saps demand and cripples its supply chain.
By 1:05 pm on Monday, shares of Tata Motors were trading at Rs109.20, up 4.30%, on the BSE; and at Rs109.20, 4.35% higher, on the NSE.
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