MUMBAI: Shares of India’s Tata Motors Ltd fell as much as 5.4 percent on Friday, heading towards their biggest daily fall in more than a year after third quarter profit missed analyst estimates.
Consolidated net profit fell 25.5 percent to 35.81 billion rupees ($580.20 million), due to losses in its domestic business, unfavorable foreign exchange rates and a dip in sales at its Jaguar Land Rover unit.
Management guidance for lower margins and capital expenditure at JLR unit in a conference call with analysts also weighs.
The company has cut JLR capex guidance, implying potential negative free cash flow in FY16, Motilal Oswal said in a note to its clients. ($1 = 61.7200 Indian rupees)