13 Jan , 2022 By : monika singh
NEW DELHI: Shares of Tata Motors NSE -1.66 % shed almost 2 per cent in Thursday's session as retail sales of JLR dropped 37.6 per cent to 80,126 units in October-December 2021, with China sales falling 6.9 per cent and Europe sales down 6.8 per cent compared to the previous quarter.
The scrip fell to a low of Rs 499 as against Rs 507.25 at previous close on the National Stock Exchange.
“Underlying demand for JLR products remains strong and the company has proactively managed semiconductor supplies to maximise production of higher margin products,” Tata Motors said in an exchange filing.
The sales of luxury automobile manufacturer Jaguar Land Rover, which is owned by Tata Motors, continue to suffer because of a shortage in semi-conductor chips.
While retail sales took a hit in October-December, the company did gain some comfort from a rise in wholesales, which climbed 8 per cent in the period under review.
According to reports, analysts are not wholly pessimistic about the company’s prospects as the chip shortage crisis is showing signs of abating.
Bank of America gave the stock a neutral rating while observing that JLR’s volumes continue to disappoint, but the positive sales mix helped the company report a positive cash flow (£150 million), reports said.
The easing of semiconductor shortage is visible in JLR’s output too, reports said, adding that production increased to 72,184 units, up 41% in October-December. The company’s order book stood at 1, 54,000 units, and the company’s cash flow was positive at £150 million (approx. ?1,520 crore), reports said.
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