» Business » Tata Motors shares surge 5% as earnings beat estimates

Tata Motors shares surge 5% as earnings beat estimates

Source: PTI
May 30, 2013 12:45 IST
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Shares of Tata Motors on Thursday soared by 5 per cent in morning trade on the bourses after the company's results beat market estimates.

After making a strong opening, shares of the auto major further gained 5 per cent to Rs 319 on the BSE, in an overall flat stock market.

Similarly, at the NSE, the stock was up 5 per cent at Rs 319.10.

The bellwether scrip was the top gainer on both the key indices - Sensex and Nifty during the morning trade.

"For Q4 FY13, Tata Motors consolidated performance was better-than our as well as street expectations on all broader fronts, as strong operating performance from JLR offset soft performance at standalone business and other subsidiaries," Angel Broking said in a report.

The British subsidiary Jaguar Land Rover came to the rescue of parent Tata Motors yet again, helping it to report a profit of Rs 3,945.5 crore (Rs 39.45 billion) in the January-March quarter, which was also aided by favourable exchange rates, record sales in China and some one-time

tax gains.

The auto major's March quarter net profit was, however, down 37 per cent over Rs 6,234 crore (Rs 62.34 billion) posted a year ago, but better than what most analysts had expected.

A 21 per cent spike in sales in China helped the marquee brand JLR report a 17 per cent year-on-year growth. For the full year (FY13), China notched up 48 per cent rise in sales, making it the single largest market for JLR.

Consolidated income from operations was Rs 56,001.64 crore (Rs 560 billion) in the quarter under review against Rs 50,907.90 crore (Rs 509 billion) in the year-ago period, Tata Motors said.

For FY13, the company posted a consolidated profit of Rs 9,892.61 crore (Rs 98.92 billion) against Rs 13,516.50 crore (Rs 135.16 billion) in FY12.

JLR accounts for more than three quarters of Tata Motors' Group revenue.

Meanwhile, in the broader market, the BSE benchmark Sensex was trading at 20,130.71, down 16.93 points at 1030 hrs.

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