Tata Motors shares plunged over 5 per cent on Thursday after the company reported 2 per cent decline in consolidated net profit figures at Rs 3,507.54 crore for the third quarter ended December 2015 against Rs 3,580.72 crore in the same period last fiscal.
The share price of Tata Motors closed 5.55 per cent down at Rs 275.65. The scrip opened the day at Rs 299 and touched a high and low of Rs 299.25 and Rs 266, respectively, in trade. Sensex fell 3.40 per cent, or 807.07 points, to 22,951.83 on Thursday.
The company said its profit was lower due to weaker sales mix (both model and market), higher depreciation and amortisation expenses, non recurrence of an annual China tax rebate (received in the third quarter of 2014-15, but in current year it was received only in the first quarter of 2015-16) and other items in the Jaguar Land Rover business.
The company’s consolidated gross sales grew by 4 per cent year-on-year to Rs 72,739.21 crore during the quarter under review.
On a standalone basis, Tata Motors posted a narrowing of net loss of Rs 200.86 crore during the quarter from a loss of Rs 2,122.72 crore in the year-ago period.
(With agency inputs)