Tata Motors share rose over 5% in trade today even as the auto giant reported a consolidated loss of Rs 314.5 crore in Q2. Share of Tata Motors gained 5.49% to Rs 143.15 against previous close of Rs 135.70 on BSE.
Tata Motors share has gained 4.79% in last 2 days. Tata Motors share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has lost 5.41% during one year and fallen 24.39% since the beginning of this year.
However, in a week, the share has gained 7.45%. Total 66.53 lakh shares changed hands amounting to turnover of Rs 93.41 crore on BSE. Market cap of the firm rose to Rs 43,137 crore. Later, the share was trading 2.80% higher at Rs 139.35.
Tata Motors share rose after the Tata Group firm forecast a stronger second half as sales of its Jaguar Land Rover (JLR) vehicles improved in key markets.
Its British subsidiary Jaguar Land Rover (JLR) returned to profit with significant positive cash flow as sales and revenue recovered from the impact of COVID-19 in Q1 FY21. JLR's retail sales stood at 113,569 units, up 53.3 per cent Q-o-Q with almost all retailers now open.
The automaker narrowing its loss to a large extent in Q2 also led to positive sentiment around the stock. The company had posted net loss of Rs 314.5 crore in Q2 against Rs 216.56 crore loss in the year-ago period. However, it reduced its loss from Rs 8,437.99 crore on a quarter on quarter basis.
The company expects a gradual recovery of demand and supply in the coming months despite concerns around risk of second wave of infection in many countries and other geopolitical risks.
"In this context, we are committed to achieving near zero net automotive debt in the coming years by focusing on better front-end activations of our exciting product range and executing our cost and cash savings with rigour," Tata Motors said.
By Aseem Thapliyal