Shares of Tata Motors jumped over 4 per cent in intraday trade on the Bombay Stock Exchange on Thursday, surging over 40 per cent in the last four days, after the auto major reported higher-than-expected earnings for the second quarter ended September 30, 2019.
The country's largest automobile manufacturer reported a lower-than-expected net loss of Rs 216.56 crore, while revenue declined 9.15 per cent to Rs 64,763.39 crore during the September quarter. On the sequential basis, the company's loss narrowed from Rs 3,679.66 crore in June quarter, helped by improvement in the performance of its British arm Jaguar Land Rover (JLR).
Boosted by strong Q2, Tata Motors share price gained as much as 4.45 per cent to touch an intraday high of Rs 179.50 apiece on the BSE, after opening marginally lower at Rs 170.85 against previous close level of Rs 171.85.
On the National Stock Exchange (NSE), stocks of Tata Motors were trading 3.11 per cent higher at Rs 177.25 after opening lower at Rs 169.80. The stock has intraday high and low of Rs 179.65 and Rs 168.95, respectively, during the day's trade.
Guenter Butschek, CEO and MD Tata Motors, hoped that the slew of measures announced by the government so far, as well as their commitments to front end significant infrastructure investments, introduce a scrappage policy and ensure adequate liquidity to MSMEs will improve the situation in the coming months.
In a separate development, the auto major said that its board has approved and authorised the raising of additional fund upto Rs 3,500 crore through external commercial borrowings.
The company also informed the exchange its promoter, Tata Sons, will infuse Rs 6,500 crore into Tata Motors to boost investor confidence. This infusion is part of a Rs 10,000-crore fundraising process by Tata Motors that has seen an erosion of its market value as well as rating downgrades from global firms.
Edited by Chitranjan Kumar