Tata Motors maintains downward journey, falls 3%

Company disappointed investors by its monthly sales numbers in MHCV segment, though showed somewhat growth in LCV segment and car sales.

Total sales in May increased 3.6% year-on-year to 64347 units whereas exports dropped 23.8% to 4219 units. MHCV sales went down 20% at 12451 units during the same period while LCV sales rose 25.6% to 27174. Car sales went up 6.7% to 17371 units due to improvement in Nano sales. Nano sales jumped 30.6% YoY to 8507 units.

Although reported profit after tax of the company came in well ahead of estimates at Rs 6,234 crore in March ended quarter of 2012 due to tax credit for previously unrecognised deferred tax of Rs 1,826 crore, JLR disappointed the street. JLR's margins were much lower than street expectations due to higher other expenses.
 
At 14:08 hours IST, the share was trading at Rs 222.60, down 2.69% after hitting an intraday high of Rs 229.45 and low of Rs 221.65. Market capitalisation of the company currently stands at Rs 71,002.51 crore.