Tata Motors scrip down on concerns over JLRMay 30th, 2012 - 5:11 pm ICT by IANS
Mumbai, May 30 (IANS) The scrip of automobile giant Tata Motors slid Wednesday as concern grew over the company’s plans to expand capital expenditure on its Jaguar Land Rover (JLR) subsidiary to two billion pounds.
The company’s scrip at the Bombay Stock Exchange (BSE) was down 11.62 percent or 32.05 points at Rs.243.85. The stock had plummeted to the low of Rs.243.80 in intra-day trade.
The development comes as concerns grew over the lower operating margins reported by JLR in the fourth quarter of 2011-12, which stood at 14.6 percent lower than the market expectations of 20 percent.
JLR had reported a revenue growth of 51.5 percent in the quarter ended March 31, 2012, at 4.14 billion pounds from 2.735 billion pounds in the corresponding quarter of 2010-11.
JLR’s net profits stood at 696 million pounds in the quarter under review, from a net loss of 262 million in the fourth quarter of 2010-11. The net profit was aided by a one-time tax deferral worth 217 million pounds, or Rs.1,888 crore, during the quarter under review.
The company had also announced an increase in its capital expenditure in JLR to two billion pounds.
Sectoral analysts say that the markets were disappointed about the lower operating margins of JLR at 14.6 percent, from the expected margins of 20 percent in the quarter under review. Besides, the capital expenditure increase also had a denting effect on the company’s scrip.
According to the sectoral analysts, there were also concerns on the slow-down in European markets as well as in the Indian economy, that has effected sales of heavy and medium commercial vehicles.
Tata Motors had reported a weak standalone net profit for the quarter under review with a growth of only 1.4 per cent to Rs.565 crore in the March quarter, against Rs.573 crore a year ago.
- HDFC Bank Q4 profit up 30 percent - Apr 18, 2012
- Idea Cellular's third quarter net profit declines - Jan 23, 2012
- Infosys beats guidance but stock dips on muted earnings - Jul 12, 2011
- Tata Motors third quarter net profit up 40.47 percent - Feb 14, 2012
- Biocon net marginally down in fiscal 2012 - Apr 27, 2012
- Reliance Capital Q3 net profit up 229 percent - Feb 10, 2012
- BEML posts Rs.14 crore net loss in Q4 of 2011-12 - May 31, 2012
- TVS Motor's third quarter net profit up 1.39 percent - Jan 31, 2012
- Dr. Reddy's Lab Q4 net profit down 34 percent - May 13, 2011
- HDFC Bank net profit up 31.48 percent - Oct 19, 2011
- ICICI's third quarter net profit up 20.25 percent - Jan 31, 2012
- HDFC quarterly net profit rises 10 percent - Jan 12, 2012
- ITC fourth quarter net profit up 24.6 percent - May 20, 2011
- Reliance Infra quarterly operating income rises 66 percent - Feb 14, 2012
- NTPC's third quarter net falls 10.16 percent - Jan 27, 2012
Tags: automobile, bombay stock exchange, bse, capital expenditure, commercial vehicles, crore, european markets, fourth quarter, indian economy, jaguar, land rover, market expectations, mumbai, net profit, net profits, operating margins, quarter ended march, slow down, tata motors, tax deferral