- Shares of
Tata Motors gained on Tuesday even as the automaker’s losses widened in the September quarter. - Investors took note of the company's bullish comments that demand remains strong for JLR and India passenger vehicles.
- Tata Motors reported a 14-fold widening of its loss to ₹4,416 crore in the September quarter as semiconductor shortage and inflation continue to impact its business.
While announcing its earnings, the company said that demand remains strong for Jaguar Land Rover (JLR) and India passenger vehicle business while commercial vehicle demand improves gradually.
However, semiconductor issues and commodity inflation continue to impact Tata Motors near term performance. “The performance is expected to improve gradually starting in H2 [second half of FY22] as both the supply chain and the pandemic situation improves,” said Tata Motors.
Shares of Tata Motors rose as much as 3% in early trade on November 2 taking note of strong demand.
Moreover, analysts also remained optimistic on the company’s performance as they see volume recovery soon.
Analysts at Jefferies reportedly said that demand recovery, market share gains and better margin will continue to help Tata Motors’ India business. It maintained a ‘buy’ rating on the stock.
Another positive part for the loss maker was its revenue grew 15% year-on-year to ₹61,378 crore in July-September period. Tata Motors’ electric vehicle business posted nearly three-fold growth with highest monthly and quarterly sales of 1,078 units and 2,704 units, respectively.
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