Tata Motors Conference Call amid share price decline: TOP points highlighted for stock INVESTORS - check what company said about chip shortage, fresh investment, free cash flow and more
After a stellar show by Tata Motors share over the past one year, the stock price plunged sharply on Tuesday amid chip supply shortage for its subsidiary Jaguar Land Rover (JLR).
After a stellar show by Tata Motors share over the past one year, the stock price plunged sharply on Tuesday amid chip supply shortage for its subsidiary Jaguar Land Rover (JLR). Tata Motors stocks gained over 190% on NSE as it went on to hit 52-wk high of Rs 360.75 from Rs 100.60 share a piece. Tata Motors shares have corrected more than 10 per cent in the last three trading sessions since Tuesday. Tata Motors share at 1 pm was trading at Rs 310.85, down Rs 6.25 (1.97%) as on Thursday.
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Amid concerns related to chip shortage, Tata Motors held a conference call on Wednesday and tried to dissuade the fear among the shareholders.
Talking about Tata Motors Con Call, Zee Business Kushal Gupta said the con call held by Tata Motors on Wednesday at 5.30 saw many commentaries emerging out from the management in this regard.
Highlights of Tata Motors Conference Call
*Chip shortage won't impact Tata Motors' product launches. There will be no delay in the launch of any product, observed the management during the Con call.
*Chip shortage to impact every major auto company in some way. It is not to be seen in isolation as far as Tata Motors is concerned.
*Talking about financial year data, it said the shortage in chip supply will not impact market share. There is no risk of losing market share, it observed.
*Tata Motors said there is no change in plans on 2.5 billion pounds new investment for FY 22. "We will go ahead with this investment for the said financial year," it said.
*Once semiconductor supply resumes, we expect that in the second half of the financial year our production will improve significantly.
*As far as our guidance related to negative EBIT margin and cash outflow is concerned, as a risk-mitigating factor, we are planning on to produce more high-margin vehicles. Also, free cashflow in H2 FY22 is likely to improve significantly in comparison to first half of the Financial Year, concluded the Tata Motors conference call.
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