Tata Motors stock skids after its muted Q1 results

Shares of Tata Motors fell by up to 5.17 per cent in morning trade on the bourses on Friday after the auto major posted a marginal 0.55 per cent increase in consolidated net profit for the quarter ended June 30, 2011.

Even after opening the day on a positive note, the stock failed to carry the momentum and slipped by 5.17 per cent to hit a low of Rs 805.10 on the NSE. A similar trend was seen on the BSE, where the stock dropped by 4.71 per cent to an early low of Rs 805.75.

The stock was the worst performer among the 30-Sensex blue-chip companies till 1045 hours.

On the volume front, over 19 lakh shares of the company changed hands on the bourses in morning trade.

Analysts said the company reported a flat net profit for the first quarter on Thursday and that is why it is witnessing selling pressure. They added that the market was expecting higher profits, which the company failed to deliver.

Tata Motors on Thursday posted a 0.55 per cent increase in consolidated net profit for the first quarter ended June 30, 2011, to Rs 1,999.82 crore, compared to Rs 1,988.73 crore for the same quarter last fiscal.

Meanwhile, the BSE benchmark Sensex was trading at 17,035.94, down 23.46 points, at 1045 hours on Friday.