Tata Motors skids

Tata Motors slumped over 5.5% to Rs.179.40 and it continues to remain in the red, figuring among the top five losers on the BSE.

The stock has reacted to its disappointing earnings for Q4FY19 wherein net profit fell 47% (YoY) at Rs.1117 crore. Revenue was down 4% (YoY) at Rs.86,422 crore.

In Q3FY19, the company’s net loss was at a huge Rs.26,993 crore, which was mainly on account of a non-cash write-off in the value of Jaguar Land Rover (JLR).

EBITDA was down 6% at Rs.8019 crore and margins fell marginally to 9.3%, down 20 bps.

The market as such had expected the earnings to take a hit and expectations were lowered. Thus in tat context, its net profit has come in exactly as per expectations.

The worry on the Street is the outlook for the future. The company has stated, “Q4FY19 has been extremely tough with market sentiments remaining muted, impacting demand across segments. The industry outlook is not going to be anything different in the short term due to multiple uncertainties.”