(Bloomberg) -- Jaguar Land Rover's Indian owner jumped the most in a decade during the special Diwali trading session on Sunday, after reporting a narrower loss than expected in the second quarter.
Tata Motors Ltd. surged 16.8% to 148.10 rupees at 7:08 p.m. in Mumbai. The company reported on Friday, after market, that it had lost 2.17 billion rupees ($31 million) in the three months ended September, versus a loss of 10.5 billion rupees a year earlier, the company said. Analysts on average expected a loss of 16.35 billion rupees, according to data compiled by Bloomberg.
After struggling in China, and dealing with fallout from the ongoing uncertainty around Brexit, JLR has almost completed a 2.5 billion-pound ($3.2 billion) savings drive that includes cutting thousands of jobs worldwide, the carmaker said Friday. Tata Motors bought the maker of the Jaguar XE sedan and Land Rover Discovery sport utility vehicle from Ford Motor Co. in 2008. JLR's pretax profit for the quarter was 156 million pounds.
“It's an organization that's got leaner in terms of costs,” Pankaj Murarka, chief investment officer at Renaissance Investment Managers Pvt. told BloombergQuint. “JLR's performance should improve every quarter for the next few quarters.”
Stock exchanges in India hold a special one-hour session every year to celebrate the Hindu festival of Diwali. Tata Motors jumped the most since May, 2009.
Read: Investors See Ingredients for India Stocks Revival After Diwali
Demand for Jaguar Land Rover vehicles in China in now stabilizing, P.B. Balaji, group chief financial officer, said on a conference call with reporters. The brand has suffered from quality issues and troubles with its dealership network in the world's biggest auto market, while parent Tata has been hit by the worst-ever slump in India's auto market.
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Analysts at Sanford C. Bernstein last month described JLR as “severely challenged” and said Tata Motors should look at BMW AG as a buyer for the unit because the German company is “awash with cash.” Tata Group, the Indian conglomerate that owns Tata Motors, is open to finding partners for the automaker but isn't planning on selling the embattled division, Chairman Natarajan Chandrasekaran said in an interview this month.
To contact the reporter on this story: Anurag Kotoky in New Delhi at akotoky@bloomberg.net
To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Arijit Ghosh, Ravil Shirodkar
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