Tata Motors is trading lower by 3% at Rs 173 on reporting a 15% year-on-year (y-o-y) drop in profit to Rs 1,880 crore due to higher raw material cost and currency losses. Analysts expected the company to report a net profit of Rs 2,048 crore.
“Sales rose 27% to Rs 35,938 crore while the cost of inputs such as steel, aluminium and rubber went up by 30% to Rs 22,100 crore," Tata Motors said in a filing to the stock exchanges.
The depreciation of the rupee resulted in a revaluation of foreign currency, borrowings, deposits and loans leading to a cumulative impact of Rs 439 crore, it added.
The stock opened at Rs 174 and hit a low of Rs 172 on the National Stock Exchange. A combined 2.7 million shares have changed hands on the counter in morning deals.
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