Tata Motors shares zoom 16% after company reduces losses to Rs 188 cr in Q2 from Rs 1,009 cr in year-ago quarter

New Delhi: Shares of Tata Motors on Tuesday zoomed 16 percent after the company posted strong quarterly results.

#CNBCTV18Market | Tata Motors emerges as the star of the morning yet again after a stellar session during Mahurat trading; Stock has gained more than 22% in 2 sessions, its highest ever 2-day % gain ever pic.twitter.com/QzII0L9FTc

— CNBC-TV18 (@CNBCTV18Live) October 29, 2019

On the BSE, the scrip jumped 15.10 percent to Rs 170.30.

On the NSE, it advanced 16.04 percent to Rs 171.40.

The homegrown auto major on Friday reported a consolidated net loss of Rs 187.7 crore for the quarter ended 30 September, against a loss of Rs 1,009.49 crore in the same period of 2018-19.

The sharp market decline over the last few months has impacted the company's second-quarter performance as well which is disappointing, said Tata Motors CEO Guenter Butschek last week

Representational image. Reuters.

"With the onset of the festive season, we are seeing initial green shoots this month with better retails in passenger vehicles. We hope that the slew of measures announced by the government so far, as well as their commitments to front end significant infrastructure investments, introduce a scrappage policy and ensure adequate liquidity to MSMEs will improve the situation in the coming months," Butschek said.

Further, the company also said its board has approved raising of around Rs 10,000 crore through preferential allotment to parent Tata Sons and external commercial borrowing.

Tata Motors said its total consolidated revenue during the period under review stood at Rs 65,431.95 crore as against Rs 71,981.08 crore in the year-ago period. It was partly affected by a Rs 3,400 crore system stock reduction in the domestic operations along with dealers.

The company's British arm Jaguar Land Rover (JLR) turned profitable, reporting a pre-tax profit of 156 million pounds, 246 million pounds better year-on-year, it added.

Equity markets were closed on Monday for 'Diwali Balipratipada'.

(With PTI inputs)