Tata Motors declines after weak sales in October

Tata Motors fell 0.71% to Rs 531.85 at 11:52 IST on BSE after the company reported a 17% decline in total vehicle sales at 42,819 units in October 2014 over October 2013.

The announcement was made on Saturday, 1 November 2014.

Meanwhile, the BSE Sensex was down 30.61 points, or 0.11%, to 27,835.22.

On BSE, so far 1.38 lakh shares were traded in the counter, compared with an average volume of 4.34 lakh shares in the past one quarter.

The stock hit a high of Rs 536 and a low of Rs 526.55 so far during the day. The stock hit a record high of Rs 544.50 on 23 September 2014. The stock hit a 52-week low of Rs 331.05 on 4 February 2014.

The stock had outperformed the market over the past one month till 31 October 2014, rising 6.54% compared with 4.64% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 19.86% as against Sensex's 7.61% rise.

The large-cap company has an equity capital of Rs 547.34 crore. Face value per share is Rs 2.

Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in October 2014 were 42,819 vehicles, a decline of 17% over 51,638 vehicles sold in October 2013.

The company's domestic sales of Tata commercial and passenger vehicles for October 2014 were 38,760 units, 17% decline over 46,926 units, sold in October last year. The decline was largely as the market continues to remain challenged by macroeconomic trends: while segments such as medium & heavy commercial vehicles (M&HCV) showed a 30% growth year-on-year, other segments such as the light commercial vehicles (LCV) sales continues to remain impacted by stringent financial rates and low consumer sentiment, the company said in a statement.

The trend of growth primarily driven by new launches continued - with the strong Zest sales, Tata Motors saw its sedan segment sales shoot by 49% year-on-year (and continued to show a month-on-month growth). But the muted market sentiment continued to impact overall sales: sales of the passenger cars in October 2014 were at 9,594 units, lower by 12% over 10,944 units sold in October 2013. The sales of utility vehicles were 1,917 units, declined by 40% over 3,189 units, sold in October last year. Sales of all Tata Motors passenger vehicles for October 2014 were at 11,511 units, lower by 19% over 14,133 vehicles sold in October 2013, the company said.

The company's sales of commercial vehicles in October 2014 in the domestic market were 27,249 units, a 17% decline compared to 32,793 vehicles sold in October last year. LCV sales were 16,897 units, a decline of 32% over October last year, while M&HCV sales stood at 10,352 units, a growth of 30%, over October last year, the company added.

The company's sales from exports were 4,059 units in October 2014, declined by 14% compared to 4,712 vehicles in October last year, the company said.

Tata Motors reported 212.7% jump in consolidated net profit to Rs 5398.21 crore on 37.2% growth in net sales to Rs 64150.74 crore in Q1 June 2014 over Q1 June 2013. The company will announce Q2 results on 14 November 2014.

Tata Motors is India's largest automobile company, with consolidated revenues of Rs 2,32,834 crore ($38.9 billion) in 2013-14. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands. It also has an industrial joint venture with Fiat in India. With over 8 million Tata vehicles plying in India, Tata Motors is the country's market leader in commercial vehicles and among the top in passenger vehicles. Tata cars, buses and trucks are being marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia.

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