Tata Motors surged over 6 per cent in early morning trade on the Bombay Stock Exchange (BSE),a day after it reported a 58 per cent jump in its net profit for the first quarter ended June 2009.
Tata motors opened at Rs 384.90 and soon went up 6.41 per cent to touch the day’s high of Rs 399 on the BSE.
A similar movement was witnessed on the National Stock Exchange (NSE) where the scrip opened at Rs 387 and touched a high of Rs 399.10,up 6.68 per cent from previous close.
The auto major recorded a 57.54 per cent jump in net profit at Rs 513.76 for the quarter ended June 30,despite sales declining by 7.6 per cent year-on-year.
A decline in raw material costs and the measures to increase cost efficiency improved the net profit of the company by 57.54 per cent over Rs 326.11 crore in the same quarter previous fiscal.
Tata Motors’ sales,however,declined to Rs 6,404.63 crore in the quarter under review as compared to Rs 6,928.44 crore in the same period last year.
On the volume front,over 23 lakh shares exchanged hands on the NSE and 6.12 lakh shares got traded on the BSE.
Tata Motors was later quoted at Rs 392.9,up 4.80 per cent on the BSE. It was trading at Rs 393.85 on the NSE,down 5.28 per cent.