Tata Motors stock surges over 8% on stellar earnings
Mumbai - Shares of Tata Motors soared over 8 percent in morning trade on Tuesday after the company reported over 3-fold jump in consolidated net profit for the June quarter.
The auto major's scrip jumped 8.18 percent to Rs 484.00 on the BSE.
On the NSE, the stock climbed 7.93 percent to Rs 482.
Tata Motors was the best performer among the blue-chips on both the Sensex and Nifty during the morning trade.
"Tata motors reported their numbers which were ahead of our estimates," said Rahul Shah, Vice President -Equity Advisory Group, Motilal Oswal Securities.
Tata Motors, which has been facing headwinds in the home market for the past many years, had yesterday reported over 3-fold jump in consolidated net profit at Rs 5,398.21 crore for the three months to June 30, bailed out yet again by its British marquee subsidiary JLR.
The Q1 2014-15 profit is the highest for the company in as many as nine quarters and "way ahead" of some estimates. The company had posted Rs 1,726-crore profit in the April-June quarter of the last fiscal. Strong JLR sales helped boost the company's overall margins by a massive 550 bps to 20.3 percent from 15.8 percent a year ago, while margins at the domestic operations fell to minus 2.8 percent from 2.3 percent.
Revenue from JLR jumped 54 percent to Rs 54,425.97 crore. On the other hand, revenue from Tata and other brand vehicles and financing during the quarter were at Rs 9,898.38 crore, down 11.33 percent.
Consolidated net revenue jumped over 38 percent to Rs 64,683 crore, thanks to the robust sales by JLR, which Tata Motors had bought in 2008 as a sick company. (PTI)