Tata Motors shares fall nearly 5 per cent on ratings downgrade
Shares of Tata Motors on Thursday fell nearly by 5 per cent after rating agency Fitch downgraded the ratings of the company and also lowered the outlook to negative.
The scrip declined 4.56 per cent to close at Rs 144.35 on the BSE. During the day, it dropped 4.95 per cent to Rs 143.75. On the NSE, shares of the company tanked 4.79 per cent to close at Rs 144.
It was the worst hit among the front-line companies on both the key indices at close of trade. On the traded volume front, 20.65 lakh shares were traded on the BSE and over three crore shares on the NSE during the day.
Global rating agency Fitch on Wednesday downgraded the ratings of Tata Motors to ‘BB-‘ from ‘BB’ and also lowered the outlook to negative, citing rising risks to its already poor profitability and free cash generation over the next two-three years.
Homegrown auto major Tata Motors on Thursday reported a consolidated net loss of Rs 3,679.66 crore for the first quarter ended June 30.
The company had posted a net loss of Rs 1,862.57 crore in the year-ago quarter, Tata Motors said in a regulatory filing.Total revenue during the period under review stood at Rs 61,466.99 crore as against Rs 66,701.05 crore in the corresponding period last fiscal.
Total vehicle sales of Tata Motors group for the quarter were at 1,36,705 units, down 22.7 per cent compared to the same period last fiscal, the company said.
British arm Jaguar Land Rover (JLR) reported a pre-tax loss of 395 million pounds as compared to 264 million pound loss in the same period a year ago. On a standalone basis, Tata Motors said its net loss for the quarter was at Rs 97.10 crore as against a net profit of Rs 1,187.65 crore in the year-ago period.
Shares of the company ended 4.56 per cent down at Rs 144.35 on the BSE.
Fitch had on February 6 placed the automakers long-term issuer ratings of ‘BB’ on rating watch negative. The downgrade reflects an expected reduction in the company’s profitability and free cash generation in the next two-three years, Fitch said in a note.
Meanwhile, the company also reported a consolidated net loss of Rs 3,679.66 crore for the first quarter ended June 30.