Shares Of Tata Motors Slip 5 Per Cent Post Second Quarter Results

Tata Motor's total income increased to Rs 80,650 crore in the period under review, as compared to Rs 62,246 crore in the year-ago period

Shares of home-grown automobile company, Tata Motors, declined nearly 5 per cent on Thursday, a day after the firm reported its second quarter (Q2) core earnings. According to a report by news agency Reuters, at least two analysts said that Tata Motors missed estimates because of higher expenses.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 95 per cent sequentially in the July-September quarter and 53 per cent from a year earlier, but were 14 per cent below its estimate, brokerage Jefferies said in a note. Emkay Research also said Tata Motors missed its EBITDA estimate.

However, the company's consolidated net loss narrowed to Rs 945 crore ($115.83 million) in the quarter from a loss of Rs 4,442 crore a year ago.

The company’s total income increased to Rs 80,650 crore in the period under review, as compared to Rs 62,246 crore in the year-ago period.

On a standalone basis, the company reported a net loss of Rs 293 crore. It had posted a net loss of Rs 659 crore in the same period a year ago. Total income rose to Rs 15,142 crore in the second quarter, as compared to Rs 11,197 crore in the same period last year.

According to Tata Motors, the demand continues to remain strong, but, will remain a key monitorable in wake of global uncertainties. Improving chip supply and cooling commodity prices will aid revenue and margins recovery and hence aim to deliver strong improvements in EBIT and free cash flows in H2FY23.

Girish Wagh, executive director, Tata Motors Ltd, said, “In Q2 FY23, the CV industry witnessed consistency in demand across segments. Our sharp focus on retail resulted in retail sales outperforming wholesale by 1.3 per cent during Q2 FY23. To better serve the evolving needs of our customers, we launched an efficient range of smart trucks in MHCV and ILCV segments, as well as best-in-class pickups, raising the benchmarks for safety, comfort, load carrying capacity while reducing their total cost of ownership. Going forward, we continue to remain in the agile mode and are keeping a close watch on the evolving geopolitical, inflation and interest rate risks on both supply and demand.”

At 1pm, the shares of Tata Motors were trading at Rs 412.80 apiece, down 4.67 per cent on the BSE.