Tata Motors, however, told Reuters it had made submissions to the CCI and would provide full support to the watchdog. It added the CCI was "conducting a preliminary enquiry to determine if there are any merits to the case".
For the quarter ended December 2019, the vehicle manufacturer reported a profit before tax was Rs 1,350 crore, as against a loss before tax of Rs 29,228 crore reported during the same period last year.
During the post-result media address, P B Balaji, chief financial officer for the Tata Motors group, cautioned that demand in China could be hit with the Coronavirus
outbreak, derailing the margin targets for the ongoing financial year.
“A few things on the horizon worry us, the big one being this,” Balaji had said. Saying they expected a three per cent Ebit (earnings before interest and tax) margin for Jaguar Land Rover (JLR), he cautioned that this could be hit by the virus outbreak, which needed to be “watched closely...It’s a developing situation and people are in the midst of a Chinese New Year break till February 8”. JLR’s retail sales in China rose rose 34.6 per cent, contributing 19.4 per cent in total sales. JLR’s overall sales during the quarter contracted 2.3 per cent to 141,200 units.
At 9:48 am, the stock was trading 7.7 per cent lower at Rs 133.75 apiece. In comparison, the benchmark S&P BSE Sensex was down 1,147.6 points, or 2.89 per cent, at 38,602.62 level. A total of 3.01 crore shares have changed hands on the counter on the BSE and NSE till the time of writing of this report. So far in calendar year 2020, the stock has plummeted 22 per cent on the BSE, compared with a 3.6 per cent decline in the S&P BSE Sensex.