JLR warning hits Tata Motors scrip
With Tata Motors’ results expected to be announced in February, brokerage firms revised its consolidated profit estimates to around R2,600 crore for the December quarter, from as high as R3,500 crore estimated earlier.
Share of Tata Motors slipped 5.91% on the BSE on Thursday to close at R293.55, its highest fall since May 2012 in percentage terms. Interestingly, Tata Motors’ shares hit an all time high of R333.4 on January 10, 2012, as investors turned buoyant on the JLR unit’s future product mix and strong volume growth from the Chinese market.
Twelve quarters after it first reported profits under the ownership of Tata Motors, JLR has turned into a performance engine for Tata Motors, more so when the parent has been seeing tough times this fiscal in the domestic market. For the December quarter, the market is estimating a loss of R300-350 crore on a standalone basis for Tata Motors.
“Tata Motors passenger vehicle business is loss making while its medium to heavy commercial vehicles witnessed significant fall during the year. JLR is the biggest profit maker for Tata Motors and any such warning would definitely have a major impact on the company,” said Deepesh Rathore, MD for IHS Automotive in India.
The ongoing product update and its
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