Tata Motors share price closed higher in trade today after the auto firm said it would reduce its group automotive debt of Rs 48,000 crore ($6.4 billion) to zero in the next three years. Tata Motors is "deleveraging this business substantially" and has set targets to generate free cash flows, chairman N Chandrasekaran said during the annual shareholder meeting. Share price of Tata Motors rose 5.86% intra day to Rs 128.3 against previous close of Rs 121.20 on BSE.
The large cap stock has risen 6.89% in two days. The share trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.
Later, the share closed 4.83% higher at Rs 127.05 on BSE.
Market cap of Tata Motors rose to Rs 39,245 crore today.
The stock has gained 14% during the last one year and fallen 31.36% since the beginning of this year.
However, in last one month, the stock has gained 22.46% against 1.88% rise in Sensex during the period.
The stock hit 52-week high of Rs 201.80 on January 15 this year and fell to 52-week low of Rs 63.60 on March 24, 2020. Total 46.41 lakh shares changed hands amounting to turnover of Rs 57.93 crore.
"The company is working with agility to transform towards a future that is strong, sustainable, and financially rewarding," Chandrasekaran said, adding that the group would also look to "unlock non-core investments". Tata Motors' domestic business is expected to generate free cash flows from fiscal year 2021 while JLR will achieve this a year later in 2022, said CFO P B Balaji said during the virtual shareholder meeting.
The Tata Group firm reported a consolidated net loss of Rs 8,443.98 crore in Q1 against net loss of Rs 3,679.66 crore in the year-ago quarter. Total income from operations in Q1 stood at Rs 31,983.06 crore against Rs 61,466.99 crore in the corresponding quarter of the last fiscal.
The company's British arm Jaguar Land Rover (JLR) reported a 44 per cent dip in net revenue at 2.9 billion pounds during the first quarter.