Tata Motors plunges to over 2-month low; JLR profit falls

Last Updated: Wed, Feb 15, 2017 11:11 hrs
Tata Nano

Tata Motors falls as much as 8.6 pct, lowest since Dec 7, 2016.

Company on Tuesday reported worse-than-expected 96 pct fall in Dec-quarter profit, citing sharply lower earnings at its British luxury carmaker Jaguar Land Rover (JLR) and losses in its domestic business.

Consolidated net profit fell to 1.12 bln rupees ($16.76 million), missing analysts estimate of 22.48 bln rupees, according to Thomson Reuters data.

Company expects to see much better Q4, Chief Financial Officer C Ramakrishnan said in a news conference.

While a weak Pound is a big boon for JLR, given hedging it has lead to high losses - Morgan Stanley analysts.

Management commentary on JLR margins has weakened significantly with hedging losses likely to continue at high levels for longer and rising incentives due to demand pressures," CLSA analysts write.

($1 = 66.8100 Indian rupees)

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