Tata Motors shares climbed over 5% in the early trading session today, despite the company reporting a massive decline in its total sales.
Share price of Tata Motors reported a 82.69% year-on-year drop in its total sales to 12,924 units in March, compared to 74,679 units in the same month last year.
Amid the nationwide coronavirus lockdown, Tata Motors' domestic sales were down by 84% in March 2020 to 11,012 units from 68,727 units on a yearly basis.
Despite fall in sales, Tata Motors share price hit an intraday high of Rs 69, rising 5.67% on BSE. Earlier, the stock opened with a gain of 5.59% against the last closing value of Rs 65.30.
However the share price of Tata Motors was trading close to its 52-week low of Rs 63.60
Tata Motors' Passenger vehicle sales in the domestic market fell by 68% to 5,676 units on a monthly basis.
"Sales were affected by the COVID-19 outbreak and the subsequent nationwide lockdown," said Passenger Vehicles Business Unit President Mayank Pareek.
Auto major's total commercial vehicle sales were down by 87% to 7,123 units, on a month-on-month basis.
Total JLR UK sales slipped 30.9% to 17,175 units compared to the same period last year, Tata Motors said.
In another update, S&P Ratings downgraded Tata Motors' rating to B from B+, citing weaker-than-expected credit metrics owing to the disruptions and economic impact from the coronavirus pandemic.
The rating agency, however, changed Tata Motors outlook to 'stable' from 'negative'.
"The impact of COVID-19 on the global automotive market will make a large dent in the recent good progress that JLR''s management has made in steering the business back to profitability and improving credit metrics. In turn, this would delay the improvement we had expected in Tata Motors'' credit profile," S&P said in a statement.
(with agency inputs)