Tata Motors Shares Slump 4% on Poor Sales
Aug 02, 2024 11:07
Tata Motors shares dropped 4% after reporting a decline in total sales in July. The company's net profit, however, increased due to strong performance by Jaguar Land Rover.
New Delhi, Aug 2 (PTI) Shares of Tata Motors slumped 4 per cent on Friday after the Mumbai-based auto major reported an 11 per cent year-on-year dip in total sales in July.
The stock of the company declined 4.09 per cent to trade at Rs 1,097.65 apiece on the National Stock Exchange (NSE).
On the BSE, scrip of Tata Motors dropped 3.69 per cent to trade at Rs 1,102.40 per piece.
The 30-share BSE Sensex tumbled 767.65 points or 0.94 per cent to trade at 81,099.90, while NSE Nifty fell 206.70 points to 24,804.20.
On Thursday, Tata Motors reported an 11 per cent year-on-year dip in total sales at 71,996 units in July.
The company had sold 80,633 units in July 2023. Its total domestic sales dipped 11 per cent and stood at 70,161 units last month as against 78,844 units in the year-ago period.
The auto major said its consolidated net profit increased 74 per cent to Rs 5,566 crore in the June 2024 quarter, aided by robust performance by Jaguar Land Rover as well as domestic business.
It had posted a net profit of Rs 3,203 crore in the April-June quarter of last fiscal.
The company's total income increased to Rs 1,09,623 crore for the period under review against Rs 1,03,597 crore in the June quarter in FY24.
On a standalone basis, the automaker said its net profit stood at Rs 2,190 crore compared to a net loss of Rs 64 crore in the year-ago period.
Total income rose to Rs 18,851 crore in the first quarter of the current fiscal against Rs 16,132 crore in the corresponding period of FY24.
Jaguar Land Rover reported a revenue of 7.3 billion pounds, the best first-quarter revenue on record, up 5 per cent versus the June quarter of FY24.
The company also said its board has approved the Scheme of Demerger of Tata Motors Ltd (TML) into two separate listed companies.
As part of the scheme, TML will demerge its commercial vehicle undertaking, involving the commercial vehicle business (all the assets, liabilities and employees relating to the commercial vehicle business) and all its related investments, into TMLCV.
Further, pursuant to the scheme, the existing passenger vehicle business in TMPV, will be merged into TML, the existing listed entity.
Upon the scheme becoming effective, both TMLCV and TML will be renamed, resulting in two separate listed entities.
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