© Reuters. FILE PHOTO: Men walk inside a Tata Motors showroom on the outskirts of Agartala, capital of the northeastern Indian state of Tripura, November 7, 2012. REUTERS / Jayanta Dey
BENGALURU (Reuters) – Stocks in India Tata Motors (NYSE: Ltd) fell 3.7% on Tuesday, after owner Jaguar Land Rover (JLR) reported a larger-than-expected quarterly loss and warned of mounting inflationary pressures.
Automakers worldwide have been rattled by chip shortages, supply chain disruptions, COVID-19 restrictions and rising raw material prices following a brief rally in late 2020.
“Demand remains strong despite near-term concerns … the semiconductor supply situation is gradually improving while inflation concerns persist,” Tata Motors said in an award filing. change.
The company’s shares were trading 1.7% lower at Rs 504.05 crore, as of 04:15 GMT. Before the results landed on Monday, shares were up more than 4% and were steady at Rs 517.75 crore.
Brokerage Jefferies said in a note that it saw better timing for JLR ahead as chip constraints eased, keeping its “buy” rating unchanged and increasing its price target to Rs 635 from Rs 625. .
Tata Motors’ consolidated net loss was 15.16 billion rupees ($203.23 million) for the quarter ended December 31, compared with a profit of 29.06 billion rupees a year earlier, when the easing was Pandemic-related restrictions have resulted in an uptick in sales.
However, the recovery was short-lived as severe semiconductor shortages and supply chain disruptions delayed production, and Tata Motors returned to losses.
For the reported quarter, analysts had expected the Mumbai-based company to report a loss of Rs 3.30 billion, according to Refinitiv IBES data.
Tata Motors’ earnings before interest, taxes, depreciation and amortization margin, a key measure of profitability, were 10.2% for the quarter, well above the 9.3% estimate.
The company said it is working directly with chip manufacturers to ensure a longer-term supply for JLR.
Total operating revenue for the quarter fell 4.5% to Rs 722.29 billion, below estimates of Rs 775.93 billion.
(1 dollar = 74,5950 Indian rupees)
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