 "Tata Motors slips 3%, nears 52-week low ahead of June quarter results")
Shares of Tata Motors dropped 3 per cent to Rs 146 in the morning deals on Thursday, extending its previous day’s 3 per cent decline on the BSE, ahead of April-June quarter (Q1FY20) earnings due later in the day. The stock of commercial vehicles major was trading close to its 52-week low of Rs 142 hit on February 8, 2019 in intra-day trade.
Analysts expect the decrease in volume across all segments to impact both the company's revenue and bottom-line. They see a 28-30 per cent year-on-year (y-o-y) fall in net profit and 13-16 per cent dip in revenue for the period under review. CLICK HERE TO READ FULL REPORT.
Fitch Ratings has downgraded the Long Term Issuer Default Rating of Tata Motors to “BB-" from “BB". The ratings agency has also removed the automaker’s previous Rating Watch Negative (RWN) status, where it was placed on February 6, 2019.
“The downgrade reflects the reduction in Fitch's expectations for Tata Motors' profitability and free cash generation in the next two to three years. Fitch revised its estimates because business risks have increased in both its India operations and its fully-owned UK-based subsidiary, Jaguar Land Rover (JLR) Automotive plc (JLR, BB-/Negative), while Tata Motors is likely to invest to bolster its long-term competitiveness. This will result in sustained deterioration in Tata Motors’ financial profile, including its leverage,” rating agency said in a release.
Meanwhile, Tata Motors in 2019 annual report said, from 2020, JLR will be introducing its next-generation modular architecture, which will streamline engineering and manufacturing processes and reduce complexity with the aim to reduce costs and improve quality. JLR have invested intensively to prepare for the move from the internal combustion engine to autonomous, connected, electrified and shared mobility or "ICE" to "ACES".
The stock has underperformed the market in the last three months, by falling 38 per cent from its recent high of Rs 236 on April 18, 2019. In comparison, the S&P BSE Sensex has slipped 3 per cent during the same period.
At 10:32 am, Tata Motors was trading 2 per cent lower at Rs 149, against a 0.39 per cent rise in the benchmark index. A combined 13 million shares changed hands on the counter on the BSE and NSE so far.
Analysts expect the decrease in volume across all segments to impact both the company's revenue and bottom-line. They see a 28-30 per cent year-on-year (y-o-y) fall in net profit and 13-16 per cent dip in revenue for the period under review. CLICK HERE TO READ FULL REPORT.
Fitch Ratings has downgraded the Long Term Issuer Default Rating of Tata Motors to “BB-" from “BB". The ratings agency has also removed the automaker’s previous Rating Watch Negative (RWN) status, where it was placed on February 6, 2019.
“The downgrade reflects the reduction in Fitch's expectations for Tata Motors' profitability and free cash generation in the next two to three years. Fitch revised its estimates because business risks have increased in both its India operations and its fully-owned UK-based subsidiary, Jaguar Land Rover (JLR) Automotive plc (JLR, BB-/Negative), while Tata Motors is likely to invest to bolster its long-term competitiveness. This will result in sustained deterioration in Tata Motors’ financial profile, including its leverage,” rating agency said in a release.
Meanwhile, Tata Motors in 2019 annual report said, from 2020, JLR will be introducing its next-generation modular architecture, which will streamline engineering and manufacturing processes and reduce complexity with the aim to reduce costs and improve quality. JLR have invested intensively to prepare for the move from the internal combustion engine to autonomous, connected, electrified and shared mobility or "ICE" to "ACES".
The stock has underperformed the market in the last three months, by falling 38 per cent from its recent high of Rs 236 on April 18, 2019. In comparison, the S&P BSE Sensex has slipped 3 per cent during the same period.
At 10:32 am, Tata Motors was trading 2 per cent lower at Rs 149, against a 0.39 per cent rise in the benchmark index. A combined 13 million shares changed hands on the counter on the BSE and NSE so far.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%