Tata Motors falls over 2 per cent as JLR profit may take a hit on Brexit 

By: | Updated: June 22, 2016 4:30 PM

Tata Motors slipped over 2 per cent after reports said that its luxury car unit Jaguar Land Rover may see its annual profit cut by 1 billion pounds ($1.47 billion) by the end of the decade if Britain leaves the European Union.

Tata Motors shares

Tata Motors generates majority of its revenue from its British luxury car unit Jaguar Land Rover. According to company’s website, Jaguar Land Rover contributed 83.2 per cent of the company’s total automotive revenue in 2014-15 compared to 82.2 per cent in 2013-14.

Tata Motors slipped over 2 per cent on Wednesday after reports said that its luxury car unit Jaguar Land Rover may see its annual profit cut by 1 billion pounds ($1.47 billion) by the end of the decade if Britain leaves the European Union.

At 11.57 am, shares of the company were trading 2.47 per cent down at Rs 473. The scrip opened at Rs 483.90 and has touched a high and low of Rs 484.70 and Rs 472.40, respectively, in trade so far. The scrip closed 2.58 per cent down at Rs 472.50.

ALSO READ: What Brexit means for Tata Motors; how it will impact automaker’s shares

Nirdosh Gaur, managing director and chief executive officer, Moneypalm – a discount brokerage house- told FEonline during an interview that companies which have major exposure to EU will get impacted from Brexit due to currency fluctuations. “Metal companies like Tata Steel and Hindalco, auto majors such as Tata Motors, Motherson Sumi, IT companies like TCS, Tech Mahindra, HCL Tech and Pharma companies like Lupin, Dr Reddy’s Laboratories will get impacted from Brexit,” he added. Read full interview

Tata Motors generates majority of its revenue from its British luxury car unit Jaguar Land Rover. According to company’s website, Jaguar Land Rover contributed 83.2 per cent of the company’s total automotive revenue in 2014-15 compared to 82.2 per cent in 2013-14.

Since the beginning of the ongoing calendar year, shares of Tata Motors rallied 20 per cent to Rs 481.65 on June 20 from Rs 401.65 on January 1. On the other hand, Sensex gained 2.70 per cent during the same period.

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