Shares of Tata Motors rallied over 7 per cent in intra-day trade on Monday after the company's UK-based subsidiary Jaguar Land Rover (JLR) said it expects improved financial results during March quarter (Q4FY19).
"The company reaffirms that it expects improved financial results in the fourth quarter period to March 31, 2019, compared to the first nine months of the financial year, with significant positive cash flow in the fourth quarter," JLR said in a regulatory filing on Friday.
Boosted by the development, shares of Tata Motors gained as much as 7.51 per cent to touch an intra-day high of Rs 187.40 apiece on the Bombay Stock Exchange. Stocks of the auto major were currently trading at Rs 186.60, up 7.06 per cent, against previous close level of Rs 174.30 on the BSE.
According to data available with exchange, as much as 18.79 lakh shares changed hand over the counter today as compared to two-week average of 9.68 lakh shares.
On the National Stock Exchange, the stocks of the company closed trade at Rs 186.05 apiece, up 6.77 per cent. It touched an intra-day high and low of Rs 187.55 and Rs 176.35, respectively.
It is to be noted that the company issued this statement after global rating agency S&P Global Ratings (S&P) downgraded the credit rating of JLR and its owner, Tata Motors, citing the growing risks of a no-deal Brexit and US import tariffs. S&P cut its rating on senior unsecured notes of JLR, Britain's biggest carmaker, and Tata Motors to 'B+' from 'BB-' with credit watch negative following its weaker than expected third-quarter results.
Commenting on the rating downgrade, Jaguar said that it is disappointed by S&P's decision to downgrade Jaguar Land Rover now. "Jaguar Land Rover is continuing to execute its product plans and project charge turnaround strategy to deliver 2.5 billion pounds of cash flow improvements by March 2020," it added.
Edited by Chitranjan Kumar