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Tata Motors shares sink 29 percent after shocking Q3 results

Tata Motors shares fell over 22 percent on Friday after the company reported a consolidated net loss of Rs 26,961 crore for the December 2018 quarter on Jaguar Land Rover (JLR) asset impairment

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By CNBC-TV18 February 8, 2019, 4:34:39 PM IST (Updated)

Tata Motors shares sink 29 percent after shocking Q3 results
Tata Motors shares fell over 29 percent on Friday after the company reported a consolidated net loss
of Rs 26,961 crore for the December 2018 quarter on Jaguar Land Rover (JLR) asset impairment. CNBC-TV18 Polls had predicted a profit of Rs 541 crore for the quarter under review.

Tata Motors shares fell as much as 22.41 percent to Rs 141.90 per share on the BSE in the opening trade. On the NSE, the stock slumped 29.4 percent to Rs 129 per share.

Shares of the Tata Motors settled at Rs 151.30 on the BSE. down 17.28 percent from its previous close. On NSE, the shares settled at Rs 150.15, down 17.88 percent.



The auto major said its Q3 profit was impacted by an exceptional item of asset impairment in its British arm JLR of Rs 27,838 crore. The consolidated revenue of the company stood at Rs 77,001 crore, up by five percent from Rs 74,337.7 crore in the year-ago period, Tata Motors said in a regulatory filing.

Motilal Oswal cut FY20/21 consolidated EPS estimate by 21%/13%, and, consequently, almost doubled net debt estimate. “Further, uncertainties surrounding Brexit as well as muted outlook for global luxury car industry coupled with faster than expected adoption of EVs in luxury segment poses threat to our FY20-21 estimates,” it said in a note. The brokerage downgraded the stock to ‘Neutral’, with a target price of Rs 166.

Axis Capital downgraded the stock to 'Hold' and lowered the TP to Rs 187 per share from Rs 217 per share. "We would get constructive on JLR only when volumes stabilize in China and Brexit concerns are behind us," it said.

On a standalone basis, Tata Motors posted PAT of Rs 617.62 crore as against Rs 211.59 crore in the year-ago quarter. Total standalone income rose to Rs 16,477.07 crore as against Rs 16,186.15 crore in the same period of previous fiscal.