The auto major is expected to post subdued numbers for the quarter under review as as tough business conditions prevailed in all key geographies and market segments.
Crisil on Wednesday downgraded the rating of Tata Motors by a notch to 'AA-' on weakening of outlook on the business risk profile of Jaguar Land Rover (JLR). The long term rating of the company has been downgraded from 'AA' to 'AA-' with negative outlook, Tata Motors said in a regulatory filing. The rating action is based on the weakening of outlook on the business risk profile of JLR, it said. Earlier this week, global ratings agency S&P reaffirmed Tata Motors' long-term issuer and issue credit ratings at 'B+' and kept the outlook negative due to high cash burn at its British arm Jaguar Land Rover and geopolitical risks.
The stock has underperformed the market in the last three months, by falling 38 per cent from its recent high of Rs 236 on April 18, 2019.
Market participants should focus on the current demand trends for JLR and outlook for key markets, update on cost-cutting initiatives at JLR, and demand trend in domestic markets
The stock dipped 5% to Rs 253 in intra-day trade after the CEO of JLR reportedly warned that a hard Brexit would cost 1.2 billion pounds.
The stock was up 2.4% to Rs 312, extending its past two days 7% rally on the BSE.