Tata Motors Witnesses 9% Stock Fallout Amid Drop in Profits

Tata Motors shares dropped over 9% after reporting a 22% plunge in net profit for Q3 of fiscal year ended December 2024. The company faced lower revenues from both passenger and commercial vehicle sectors, although its British arm, Jaguar Land Rover, reported a successful quarter.

Shares of Tata Motors fell sharply by more than 9% on Thursday morning after the company disclosed a significant 22% decline in its consolidated net profit for the third quarter ending December 2024. This downturn brought the stock price to a 52-week low of Rs 684.25 on the BSE and Rs 683.20 on the NSE.

The financial strain was attributed to reduced revenue in its passenger and commercial vehicles segments, as reported by Tata Motors in a regulatory filing. The firm achieved a net profit of Rs 5,578 crore, significantly down from Rs 7,145 crore in the equivalent quarter of the previous financial year.

On a positive note, Tata's British subsidiary, Jaguar Land Rover, reported robust performance with record revenues of 7.5 billion pounds, marking a ninth consecutive profitable quarter. JLR's CEO, Adrian Mardell, highlighted milestones achieved in their strategic agenda, projecting optimism for the future.

(With inputs from agencies.)