Tata Motors posted a dismal set of Q3FY16 numbers on the back of weak sales from China and poor model mix. This was partly offset by better offtake in Europe, America and UK. The effect of this was seen on the company’s performance – it posted a 2% (YoY) decline in net profit at Rs.3507 crore. The company said non recurrence of an annual China tax rebate, which was received in Q3 FY15 but in Q1FY16 also impacted bottomline. Its revenue increased 3% to Rs 72,256 crore, helped mainly by better JLR and MHCV segments.

During the quarter, JLR sales volume rose 23% but domestic sales declined 3%.  Its EBITDA fell 7% and margins contracted 140 bps to 13%. A 28% rise in depreciation also affected the bottomline. The only solace – tax expense fell 70%. The company stated during the quarter that initial insurance recoveries of 30 million pound have been recognised as exceptional income, partially reversing exceptional charge recognised in preceding quarter for Tianjin Port explosion in China.

The stock price had hit a new 52-week low yesterday at Rs.266. Today, the stock did not fall as much as numbers were not as bad as expected. Fund houses, post the numbers have upgraded the stock and with bargain hunters also flocking the counter, this has pushed up the stock price to almost 8% to an intra day high at Rs.297.