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BusinessTata Motors stock sees major fall following Q4 results that underwhelm market...

Tata Motors stock sees major fall following Q4 results that underwhelm market expectations


Tata Motors witnessed a significant drop in its share price on Monday, tumbling over 9% in intraday trading. The auto major's weak March quarter earnings saw its market capitalization go down by Rs 30,000 crore.

While Tata Motors had posted solid year-over-year growth in revenue and profits for the fourth quarter ending March 2024, the numbers fell short of analyst estimates. Consolidated revenue for the quarter rose 13.3% to nearly Rs 120,000 crore compared to the same period last year. Net profit jumped over three-fold to Rs 17,500 crore versus Rs 5,500 crore in Q4 2023.

However, the results disappointed investors expecting even stronger performances. Tata Motors' stock price plunged 9.44% to Rs 948 on BSE and fell 9.5% to Rs 947.20 on NSE. It turned out to be the biggest percentage decliner among major listed blue-chip companies on both the exchanges.

The weaker-than-forecast earnings update wiped out Rs 29,946 crore from Tata Motors' overall market value, which dropped to Rs 3,17,998 crore as per provisional closing data. The auto stock's poor showing also pulled down the Nifty Auto index by 3%.

While the homegrown automaker managed healthy growth across all three of its vehicle segments, the numbers were not high enough to meet lofty market expectations. Slowing global economic conditions and rising input costs continue posing challenges for auto firms. Tata Motors will need to deliver ongoing strong performance to boost investor sentiment in the coming quarters.

The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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