Shares of Tata Motors slump on third quarter earnings

Shares of Tata Motors fell as much as 6.2 per cent on Friday, heading towards their biggest daily fall in more than a year after third-quarter profit missed analyst estimates.

Consolidated net profit fell 25.5 per cent to Rs 35.81 billion ($580.20 million), due to losses in its domestic business, unfavourable foreign exchange rates and a dip in sales at its Jaguar Land Rover unit.

Management guidance for lower margins and capital expenditure at JLR unit in a conference call with analysts also weighs.
 
 The company has cut JLR capex guidance, implying potential negative free cash flow in FY16, Motilal Oswal said in a note to its clients.

The shares of the company were trading at Rs 558.20, down by 5.32 per cent at the Bombay Stock Exchange (BSE) at 12:11 pm.

(Reuters)