Tata Motors skids on lower than expected Q1 net

Tata Motors has plunged almost 5% at Rs 808 after reporting a marginal 0.5% year-on-year rise in its consolidated net profit at Rs 2,000 crore, despite of 24% growth in net sales for the quarter ended June 30, 2011. Analyst expected a net profit of Rs 2,212 crore from the India's biggest automobile manufacturer in terms of revenues.

The Tata group company has reported net sales of Rs 33,392 crore in Q1FY12 as compared to Rs 26,876 crore in a year ago period.

The rising interest rates, higher fuel costs and inflation had impacted margins more than 100 basis points during the reporting quarter restricting it to passing on the costs to its customers.

The stock hit a low of Rs 805 after opening at Rs 851 on the National Stock Exchange (NSE). A combined 2.4 million shares have changed hands on the counter till 1116 hours.