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Tata Motors share price rises over 2% ahead of Q3 earnings

The Tata Motors share price rose up to 2.13% to 182 level compared to the previous close of 178.20 in early trade. The Tata Motors share price has been rising for the last two days and has risen 3.45% during the period.

twitter-logoBusinessToday.In | February 7, 2019 | Updated 11:50 IST
Tata Motors share price rises over 2% ahead of Q3 earnings
The Tata Motors share rose up to 2.13% to 182 level compared to the previous close of 178.20 in early trade. The Tata Motors share price has been rising for the last two days and has risen 3.45% during the period.

The Tata Motors share was trading higher in early trade ahead of the automaker's Q3 earnings later in the day. The Tata Motors share rose up to 2.13% to 182 level compared to the previous close of 178.20 in early trade. The Tata Motors share price has been rising for the last two days and has risen 3.45% during the period.

The Tata Motors share price has fallen 51.68% during the last one year and risen 5.68% since the beginning of this year.

The Tata Group firm posted its second straight quarterly loss at Rs 1,049 crore for the quarter ended September 30, 2018. The Q2 performance was impacted by JLR's profitability coming under pressure largely due to dampened sentiment at China, its largest market, and uncertainty regarding Brexit in the UK. The company had reported a net profit of Rs 2,501.67 crore in the July-September quarter of 2017-18.

Also read: Tata Motors share manages to close marginally higher after Fitch puts credit rating on negative watch

24 of 38 brokerages rate the Tata Motors share "buy" or 'outperform', 11 "hold", two "underperform" and one "sell", according to analysts' recommendations tracked by Reuters.

The Tata Motors share price was trading above its 50-day moving average 176.79 but below its 200 day  moving average of 207.68 level.

On Wednesday, credit ratings agency Fitch Ratings said it has placed the credit rating of the Tata Group firm on negative watch, stating increasing risks for its British luxury car unit - Jaguar Land Rover (JLR) - over a potentially chaotic Brexit. The Tata Motors share price closed 1.51% higehr at 178.20 compared to the previous close of 175.55 on the BSE.

The development comes after the ratings agency placed the credit ratings of JLR, Britain's biggest carmaker, under review for possible downgrades.  

"Trade barriers and logistic issues from a disorderly Brexit could have an impact on JLR's competitive positioning and lead to significantly lower sales and profitability," the credit rating agency said, placing the parent's long-term issuer default rating on watch negative.

JLR had said in January there would be a week-long pause in production in April due to potential disruption from Brexit and trimmed production.

The carmaker, based in central England, is also planning to prune its workforce as it battles to return to profitability amid lower Chinese demand and a slump in European diesel sales.

The Tata Group firm reported a 8 per cent decline in domestic sales to 54,915 units in January as compared with 59,441 units in the same month last year. The company's passenger vehicle sales in the domestic market declined 11 per cent to 17,826 units last month, compared with 20,055 units in January 2018.

The company said its commercial vehicle (CV) sales in the domestic market stood at 37,089 units in January, down 6 per cent from 39,386 units in the same month last year. Total exports during the month stood at 3,270 units, a dip of 37 per cent as compared with the same period of last month due to the current liquidity crisis in Nepal, formation of new government in Bangladesh and political uncertainty in Sri Lanka, the company said.

Edited by Aseem Thapliyal

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