Tata Motors Accelerates 3% After Q2 Results
The stock of Tata Motors rallied more than 3 per cent on Friday, after the auto manufacturer reported the strong quarterly results. The stocks were trading at Rs 650 or 2.24 per cent higher in the afternoon trading session.
For the September quarter of the current fiscal, the company's consolidated net sales increased by 32.1 per cent to Rs 1,05,128 crore from Rs 79,611.4 crore in the same quarter last fiscal year.
The company posted a combined net profit of Rs 3,764 crore against the net loss of Rs 945 crore in the same quarter of last fiscal year. The operating margin also increased by 400 basis points (bps) to 13.7 percent.
Profits from Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the three months was Rs 14,400 crore, up 86 per cent from Rs 5,571 crore in the same quarter of last fiscal year.
Company’s foreign acquired subsidiary Jaguar and land rover (JLR) revenue increased by 30.4 per cent to £ 6.9 billion, owing to increased wholesales, improved mix, cost savings, and investment in demand development.
JLR sales, excluding its China joint venture, increased by 29 per cent to 96,817 units. According to the corporation, the ongoing improvement in the availability of specialist semiconductors aided in ramping up production and sales.
The auto-maker stock has returned 66 per cent returns year-to-date (TYD). The stock has outperformed the broader Nifty Auto index returns of 27 per cent. Moreover, the stock has also outperformed the benchmark indices Nifty and Sensex returns of 6 per cent YTD.
