Tata Motors Shares Plummet Amid Sales Drop

Tata Motors experienced a notable decrease in its shares, dropping over 4% following an 11% year-on-year decline in total sales for July. The stock closed lower on both NSE and BSE. Despite the drop in sales, the company reported a 74% increase in net profit for the June 2024 quarter.

Shares of Tata Motors took a sharp dive, declining more than 4% on Friday after the automotive giant reported an 11% year-on-year decline in total sales for July.

The company's stock fell 4.32% to Rs 1,095 apiece on the National Stock Exchange (NSE) and 4.17% to Rs 1,096.90 on the Bombay Stock Exchange (BSE).

Trading volume was significant, with 2.19 crore equity shares changing hands on NSE and 20.16 lakh shares on BSE throughout the day.

Overall market sentiment was also negative, with the 30-share BSE Sensex plunging by 885.60 points or 1.08% to 80,981.95, and the broader Nifty of NSE slipping 293.20 points or 1.17% to 24,717.70.

In its latest financial report, Tata Motors disclosed an 11% drop in total sales to 71,996 units in July, down from 80,633 units in the same month last year. Domestic sales similarly dipped by 11%, falling to 70,161 units compared to the previous year's 78,844 units.

Despite the decline in sales, the company posted a strong 74% increase in consolidated net profit, reaching Rs 5,566 crore for the June 2024 quarter, buoyed by robust performance from both Jaguar Land Rover and its domestic operations.