Tata Motors gains momentum after good March sales

Tata Motors rose 0.7% to Rs 469.50 at 10:30 IST on BSE after the company said that total sales of passenger and commercial vehicles rose 8% to 57,145 vehicles in March 2017 over March 2016.

The announcement was made on Saturday, 1 April 2017.

Meanwhile, the BSE Sensex was up 140.18 points, or 0.47%, to 29,760.68.

On the BSE, 1.52 lakh shares were traded in the counter so far, compared with average daily volumes of 5.52 lakh shares in the past one quarter. The stock had hit a high of Rs 472.25 and a low of Rs 468.35 so far during the day. The stock had hit a 52-week high of Rs 598.60 on 7 September 2016. The stock had hit a 52-week low of Rs 368.40 on 5 April 2016.

The stock had underperformed the market over the past one month till 31 March 2017, gaining 2.15% compared with 3.05% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 1.15% as against Sensex's 11.24% gains.

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

Tata Motors said its domestic sales of Tata commercial and passenger vehicles rose 10% at 51,309 units in March 2017 over March 2016. Tata Motors' passenger vehicles sales jumped 84% at 15,433 units in the domestic market in March 2017 over March 2016, due to continued strong demand for the Tata Tiago. The company has also received an encouraging response for its recently launched lifestyle utility vehicle, Tata Hexa and its latest styleback, the Tata Tigor.

The overall commercial vehicles sales in the domestic market fell 6% at 35,876 units in March 2017 over March 2016. The wholesale figures of Tata Motors commercial vehicles were affected by the Supreme Court judgement announced on 29 March 2017, leading to confusion and the consequent focus at the dealer level to increase retail and to reduce the levels of unsold stock.

The Supreme Court observed on 29 March 2017 and ordered a freeze on the registration and sale of BS-III fuel compliant vehicles by any manufacturer or dealer on and from 1 April ,2017, when the next level and environmentally friendly BS-IV fuel emission standards are scheduled to kick in.

Overall sales of Tata Motors' medium and heavy commercial vehicles (M&HCV) fell 5% at 17,648 units in March 2017 over March 2016. Tata Motors bus sales continued to grow by 26% in March 2017, driven primarily by State Transport Undertaking (STU) orders. Sales of Tata Motors' small & light commercial vehicles shed 8% at 18,228 units in March 2017 over March 2016.

The company's sales from exports fell 8% at 5,836 units in March 2017 over March 2016.

Meanwhile, public sector oil marketing companies (PSU OMCs) on Friday, 31 March 2017, announced reduction in selling price of petrol and diesel with effect from midnight of 31 March 2017. Petrol price was decreased by Rs 3.77 per litre and diesel price was reduced by Rs 2.91 a litre at Delhi (excluding state levies). The demand for vehicles rises if fuel prices are reduced.

Tata Motors' consolidated net profit fell 96.2% to Rs 111.57 crore on 2.2% decline in net sales to Rs 66855.18 crore in Q3 December 2016 over Q3 December 2015.

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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