Tata Motors shares up nearly 3% on stellar earnings
Shares of Tata Motors on Tuesday ended nearly 3% higher after the company's net profit almost tripled in the quarter ended December. Tata Motors Q3 net profit triples on Land Rover salesbusiness Updated: Feb 11, 2014 19:33 IST
Shares of Tata Motors on Tuesday ended nearly 3% higher after the company's net profit almost tripled in the quarter ended December.
Tata Motors's scrip closed at Rs 374.30, up 2.83% on the BSE. In intra-day, the stock surged 5% to Rs 382.45.
At the NSE, the auto major's scrip ended 2.76% up at Rs 374.10.
The stock was the top gainer among the 30-Sensex blue-chips.
Tata Motors said after market hours on Monday that consolidated profit surged to Rs 4,805 crore in the three month ended December 31 from Rs 1,627.5 crore a year earlier, boosted by its British arm Jaguar Land Rover and one-time profit from the sale of investments and a tax write-back.
"Tata Motors reported stellar results for Q3 FY'14, significantly beating consensus as well as our expectations," said Yaresh Kothari, Research Analyst – Auto & Auto Ancillary, Angel Broking.
JLR, the luxury car maker that Tata Motors acquired as a sick company in 2008 and turned around, has given an impetus to the parent's earnings for the eighth straight quarter.
This is the highest net profit for Tata Motors since it posted earnings of Rs 6,234 crore in the March 2012 quarter.
The company earned Rs 1,947.90 crore from the sale of investments last quarter, while there was a tax credit of Rs 630 crore, which helped boost profit, chief financial officer C Ramakrishnan said.