You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Tata Motors rises about 4% in two days

Topics
Business Finance

Capital Market 

Tata Motors rose 1.14% to Rs 75.50, extending gains for second day.

Shares of the auto maker have added 3.56% in two sessions from its recent closing low of Rs 72.90 recorded on 15 April 2020.

Meanwhile, Fitch Ratings has downgraded the long-term issuer default rating (IDR) of Tata Motors (TML) to 'B' from 'BB-' and placed 'negative' outlook on the same.

The downgrade reflects Fitch's significantly lower expectations for TML's profitability and cash flow over the next few years due to the effect of the coronavirus pandemic on demand and disruption to TML's Indian operations as well as to key auto markets globally that are served through its fully owned UK-based subsidiary, Jaguar Land Rover Automotive.

The ratings agency said that it estimates that TML's consolidated EBITDA generation will drop by nearly 50% year-on-year (YoY) in the financial year ending March 2021 (FY21) and will remain below FY19 levels in FY22 even with a recovery.

It further expects sharp deterioration in TML's free cash generation and leverage, as the company will have limited flexibility to lower heavy investment, despite lower profitability, particularly at JLR, as it needs to bolster its long-term competitiveness in view of emerging industry trends.

The negative outlook reflects risks to TML's financial profile from a prolonged pandemic that could result in further deterioration in TML's profitability and exert greater pressure on its liquidity than we currently envisage.

The auto manufacturer's consolidated net profit surged 106.4% to Rs 1,738.30 crore on a 6.8% decline in net sales to Rs 71,051.42 crore in Q3 December 2019 over Q3 December 2018.

Tata Motors is a leading global automobile manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility vehicles, trucks, buses and defense vehicles.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, April 17 2020. 11:03 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU