Recognized as India’s biggest truck and bus maker, Tata Motors, posted a rise in quarterly profit to 12% which is less than expected. Jaguar Land Rover (JLR), which was brought in 2008 has been Tata’s main profit driver in the latest quarters. However, profitability at Tata’s JLR seems to be dampening in view of sluggish growth in China and struggling phase of European economies.
In order to balance manufacturing with demand, Tata Motors Ltd. was forced to shut down two units twice for a three-day period in the month of June. Tata Motors Ltd net profit results shoved 22.45 billion rupees for the quarter that ended in June, which is up 12.3% when compared to previous year. This is, however, less than expected as the analysts expected the net profit to go up to 27.61 billion rupees. The company has also attributed the disappointing results to the impact of foreign exchange loss. The sales of Tata Motor Vehicles also fell by 3.6%
Tata Motors Ltd. NSE shares soon saw a downtrend of about 4% plunging it’s shares to as low as INR231.65/-