Tata Motors share price rallies over 4% after in-line Q2 results; brokerages remain bullish on stock
Tata Motors share price rallied over 4% in early trade on Friday after the company reported September quarter earnings in line with Street estimates. Tata Motors shares jumped as much as 4.49% to ₹665.45 apiece on the BSE. Auto major Tata Motors on Thursday reported a consolidated net profit of ₹3,783 crore for the second quarter of FY24, driven by robust performance by Jaguar Land Rover.
The company had posted a consolidated net loss of ₹1,004 crore in the July-September period last fiscal. Tata Motors’ total consolidated revenue from operations in Q2FY24 grew 32% to ₹1,05,128 crore as compared to ₹79,611 crore in the year-ago period, largely due to a 21% rise in retail sales of JLR models, including at its China joint venture. Read here: Tata Motors Q2 Results Highlights: Net profit at ₹3,764 crore, revenue at ₹1.05 lakh crore This is the fourth successive quarter of positive results for the auto major.
Its British luxury arm Jaguar Land Rover’s (JLR) revenue increased 30.4% year-on-year with strong wholesales and improved mix. JLR raised its FY24 EBIT margin guidance to 8% from 6% earlier. The carmaker said that production and wholesale volumes are expected to increase in H2FY24.
JLR continues to expect free cash flow of over £2 billion in FY24. Analysts remain bullish on Tata Motors stock after Q2 results amid expectations of healthy performance of JLR business and commodity tailwinds. Brokerage firm Nuvama Institutional Equities said Tata Motors remains one of its top picks on expectations of a sales cycle recovery, margin expansion and debt reduction.
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