Tata Motors, a leading home-grown automobile manufacturer, saw a remarkable 8 per cent surge in its stock during Monday morning trading session. The surge came after the company disclosed a twofold increase in net profit, amounting to Rs 7,100 crore, for the quarter ending in December 2023.
The company's stock reached an all-time high of Rs 949.60 on the BSE, marking an 8 per cent climb. Notably, Tata Motors emerged as the top performer among the firms listed on the BSE Sensex.
Tata Motors' financial performance for the same quarter in the preceding year showcased a net profit of Rs 3,043 crore, marking its return to profitability after a two-year period. According to the company's statement released on Friday, revenue surged by 25 per cent year-on-year (YoY) to Rs 1,10,600 crore in the third quarter (Q3) of the ongoing fiscal year.
The auto giant clocked a reduction in its net debt by Rs 9,500 crore to Rs 29,200 crore, reaffirming its commitment to deleveraging targets. Tata Motors also highlighted a more than double increase in EBIT margin to 8.8 per cent in Q3FY24.
Tata Motors expressed optimism regarding its future outlook across all three of its auto businesses. The company anticipates a further enhancement in performance during the fourth quarter (March quarter), driven by seasonal factors, new product launches, and an improvement in supplies at Jaguar Land Rover (JLR).
In a statement, Tata Motors highlighted its achievement of a net debt reduction of Rs 9,500 crore during the December quarter. The company also conveyed its confidence in realizing its deleveraging objectives.
The robust financial results coupled with positive projections for future performance have positioned Tata Motors favourably in the market, reflecting investor confidence and optimism in the company's strategic direction.
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