India's Tata Motors slumps on Q3 earnings miss

06 Feb, 2015

India's Tata Motors slumps on Q3 earnings missMUMBAI: Shares of India's Tata Motors Ltd fell as much as 5.4 percent on Friday, heading towards their biggest daily fall in more than a year after third-quarter profit missed analyst estimates.

Consolidated net profit fell 25.5 percent to 35.81 billion rupees ($580.20 million), due to losses in its domestic business, unfavourable foreign exchange rates and a dip in sales at its Jaguar Land Rover unit.

Management guidance for lower margins and capital expenditure at JLR unit in a conference call with analysts also weighs.

The company has cut JLR capex guidance, implying potential negative free cash flow in FY16, Motilal Oswal said in a note to its clients.

Copyright Reuters, 2015

Read Comments