Tata Motors down over 4%

about 29 days ago
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The market is disappointed with the Q3FY20 performance of Tata Motors though there has been an increase in margins and profitability as this has been done on the back of cost cutting.

The stock fell over 4% to Rs.178.40 and remains strongly in the red.

The company’s revenue fell 7% (YoY) to Rs.71,676 crore and net profit was a turnaround – from a loss of Rs.26,993 crore, it posted a profit of Rs.1738 crore.

Operating profit rose 21% at Rs.7394 crore and margins rose from 8% to 10.3%. Total expenses were down almost 10%.

The decline in the consolidated topline was the main issue as it also indicated a slower growth in sales of its JLR. UK sales have not grown as much due to the Brexit and fall in demand for fossil-fueled vehicles. Though sales in China have grown, the company is planning on 4500 job cuts across the globe. With the spread of the coronavirus, this is something which the company have to watch out for in Q4 given its Chinese sales.

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