Tata Motors Hikes 6% On Expectations Of Better Q4 Financial Results
Tata Motors shares went up 5.6 per cemt in the early trade on April 1 after the firm said it expects better financial results in the last quarter of fiscal year 2018- 19.
The stock was one of the worst performers in last one year, falling 46 percent on JLR concerns. It was quoting at Rs 183.45, up Rs 9.15, or 5.25 percent on the BSE, at 0948 hours IST.
After disappointed by S&P’s decision to downgrade Jaguar Land Rover, Tata Motors, on March 29, reaffirmed that it expects improved financial results in the fourth quarter period to March 31, 2019, compared to the first nine months of the financial year.
It also expects significant positive cashflow in the fourth quarter.
Jaguar Land Rover is continuing to execute its product plans and project charge turnaround strategy to deliver 2.5 billion pound of cashflow improvements by March 2020, Tata Motors said.
On March 28, S&P Global Ratings downgraded the credit rating of Tata Motors and its wholly-owned subsidiary Jaguar Land Rover (JLR).
The rating agency cited weakness in profitability of JLR as the main reason for downgrading credit rating of Tata Motors and its British arm.
S&P cut its rating on senior unsecured notes of JLR and Tata Motors to ‘B+’ from ‘BB-‘.
In addition, the Tata Group firm, on March 29, sold its shareholding in TAL to TASL at an enterprise value of Rs 625 crore for the aerospace business and acquired the non-aerospace business from TAL at a value of Rs 10 lakh.