MUMBAI, Feb 11: Shares of Tata Motors today surged more than 5 per cent after the company’s net profit almost tripled in the quarter ended December.
The shares opened on a strong note and gained 5 per cent to Rs 382.45 on the BSE. On the National Stock Exchange, the scrip rose 5.12 per cent to Rs 382.70.
The stock was the top gainer on both the benchmark BSE Sensex and the CNX Nifty indices in early trade.
Tata Motors said after market hours yesterday that consolidated profit surged to Rs 4,805 crore in the three month ended December 31 from Rs 1,627.5 crore a year earlier, boosted by its British arm Jaguar Land Rover and one-time profit from the sale of investments and a tax write-back.
“Tata Motors reported stellar results for Q3 FY’14, significantly beating consensus as well as our expectations,” said Yaresh Kothari, Research Analyst – Auto & Auto Ancillary, Angel Broking.
JLR, the luxury car maker that Tata Motors acquired as a sick company in 2008 and turned around, has given an impetus to the parent’s earnings for the eighth straight quarter.
This is the highest net profit for Tata Motors since it posted earnings of Rs 6,234 crore in the March 2012 quarter.
The company earned Rs 1,947.90 crore from the sale of investments last quarter, while there was a tax credit of Rs 630 crore, which helped boost profit, Chief Financial Officer C Ramakrishnan said. (AGENCIES)
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