Tata Motors gains after declaring JLR global sales

Tata Motors rose 1.66% to Rs 380.65 at 11:51 IST on BSE after the company said that sales of its subsidiary Jaguar Land Rover rose 3% to 49,066 units in January 2018 over January 2017.

The announcement was made during trading hours today, 7 February 2018.

Meanwhile, the S&P BSE Sensex was down 67.06 points or 0.2% at 34,128.88.

On the BSE, 15.27 lakh shares were traded on the counter so far as against average daily volumes of 6.64 lakh shares in the past one quarter. The stock had hit a high of Rs 388 and a low of Rs 377.95 so far during the day. The stock had hit a 52-week high of Rs 531.35 on 6 February 2017 and a 52-week low of Rs 357 on 6 February 2018.

The stock had underperformed the market over the past one month till 6 February 2018, falling 13.66% compared with 0.46% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 14.65% as against Sensex's 2.94% rise. The scrip also underperformed the market in past one year, declining 26.11% as against Sensex's 20.68% rise.

The large-cap company has equity capital of Rs 577.47 crore. Face value per share is Rs 2.

Tata Motors said that sales of its subsidiary Jaguar Land Rover (JLR) rose 3% to 49,066 units in January 2018 over January 2017. Jaguar sales were up by 1% year-on-year with 14,066 units sold amid strong demand for the Jaguar XF Sedan, including the long-wheelbase XFL in China. Land Rover sales rose by 4% with 35,000 units sold, primarily reflecting continuing strong demand for the Range Rover Velar and Land Rover Discovery.

Jaguar Land Rover is the UK's largest automotive manufacturer, built around two iconic British car brands: Land Rover and Jaguar.

Andy Goss, Jaguar Land Rover Group Sales Director, said the continued demand in China is encouraging however the company is still facing challenges because of tough trading conditions in key UK and Europe markets.

Tata Motors' consolidated net profit surged 988.6% to Rs 1214.60 crore on 16% growth in net sales to Rs 74156.07 crore in Q3 December 2017 over Q3 December 2016. The company announced Q3 result after market hours on 5 February 2018.

In a separate announcement made after market hours on 5 February 2018, Tata Motors said that the company and Warburg Pincus have mutually decided to call off the transaction in Tata Technologies. As per the transaction announced on 15 June 2017, Warburg Pincus was to acquire approximately 43% stake in Tata Technologies from Tata Motors and other Tata entities.

However, due to delays in securing regulatory approvals as well as due to the recent performance of the company not meeting internal thresholds because of market challenges, the parties to the transaction have mutually decided not to proceed with closure of the transaction. Tata Motors will continue to explore strategic options to sell its stake in Tata Technologies and remains positive on the outlook of the business.

Tata Motors is a market leader in commercial vehicles in India. The company's British luxury unit Jaguar Land Rover (JLR) sells premium luxury cars.

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