JLR proprietor Tata Motors’ shares slip after quarterly loss

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BENGALURU, Jan 31(Reuters) – Shares of India’s Tata Motors Ltd (TAMO.NS) fell 3.7% on Tuesday, after the Jaguar Land Rover (JLR) proprietor reported a much bigger quarterly loss than anticipated and warned of rising inflationary pressures.

Automakers worldwide have been roiled by chip shortages, provide chain disruptions, COVID-19 restrictions and rising uncooked materials costs after a short-lived restoration in the direction of the tip of 2020.

“Demand stays sturdy regardless of near-term issues… the semiconductor provide scenario is enhancing progressively while inflation worries persist,” Tata Motors stated in an change submitting.

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Shares of the corporate had been buying and selling 1.7% decrease at 504.05 rupees, as of 0415 GMT. Earlier than outcomes landed on Monday, the inventory had jumped greater than 4% and settled at 517.75 rupees.

Brokerage Jefferies stated in a word that it noticed higher instances for JLR forward as chip constraints eased, retaining its “purchase” score and elevating the goal worth to 635 rupees from 625 rupees.

Tata Motors’ consolidated internet loss got here in at 15.16 billion rupees ($203.23 million) for the quarter ended Dec. 31, in comparison with a revenue of 29.06 billion rupees a yr earlier, when an easing of pandemic-related restrictions led to a pick-up in gross sales.

Males stroll inside a Tata Motors showroom on the outskirts of Agartala, capital of India’s northeastern state of Tripura, November 7, 2012. REUTERS/Jayanta Dey

Nonetheless, the restoration was short-lived as acute semiconductor shortages and provide chain disruptions delayed manufacturing, and Tata Motors slipped again to losses.

For the reported quarter, analysts had anticipated the Mumbai-based firm to report a lack of 3.30 billion rupees, based on Refinitiv IBES information.

Tata Motors’ earnings earlier than curiosity, taxes, depreciation, and amortisation margin, a key measure of profitability, was 10.2% for the quarter, above estimates of 9.3%.

The corporate stated it was participating immediately with chip producers to safe longer-term provides for JLR.

Complete income from operations for the quarter fell 4.5% to 722.29 billion rupees, under estimates of 775.93 billion rupees.

($1 = 74.5950 Indian rupees)

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Reporting by Chandini Monnappa in Bengaluru and Aditi Shah in New Delhi; Modifying by Shounak Dasgupta and Subhranshu Sahu

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