Share this article Share Tata Motors India shares hit a record high on Monday as investors celebrated the company’s first-quarter results.
The company has seen record growth in recent years and the latest data from the company revealed it has now shipped 3.2 million cars.
The carmaker also posted a strong first-half profit of Rs 1,639 crore ($20.7 million), a figure that is higher than the Rs 1.6 billion reported in the year-ago quarter.
Tata Motors also reported a net profit of $1.3 billion, a jump of 39 per cent over the year, as it reported net profit from operations of Rs 2,957 crore ($5.9 billion).
The company reported a profit of almost $9 billion, compared to Rs 9.4 billion in the previous fiscal year.
The financials are being reported by Tata Motors, which is owned by the conglomerate Tata Sons.
Shares rose nearly 20 per cent to $11.20, which was up nearly 26 per cent from Rs 9 a penny on Friday.
Tata Sons said that the new numbers will add more value to the company as it is aiming to reach $15 billion in revenue by 2021.
It is one of the largest carmakers in the world, and the company is set to make a record $1 trillion in revenue this year, according to analysts.
The growth in the company has been driven by growth in passenger vehicle sales and business models such as electric cars and autonomous vehicles.
“The key driver behind the growth of passenger vehicle volumes and profitability has been an expansion of the vehicle-to-vehicle (V2V) market with the launch of the Tesla Model S,” Tata Sons CEO Mukesh Ambani said in a statement.
“This growth has also enabled the company to take on the challenge of integrating the technology in the car and also the ecosystem of autonomous vehicles and self-driving cars.”
The growth of the V2V market was fueled by the emergence of new entrants, such as the Tata Motors and Mahindra Group, who also had impressive results.
“With a huge volume of sales, we saw tremendous growth of our share price and profit in the first half of the year,” Mr Ambani added.
Tata Motor also saw growth in car sales and profit.
“In Q1 2019, we exported 1.4 million cars to China and in the same period in 2019, our share grew to nearly $30 billion.
We are confident that in 2021, our global market share will grow to more than 50 per cent,” Mr Mukesh said in the statement.
The global market for passenger cars is expected to grow to $4.2 trillion by 2021, with China accounting for almost two-thirds of this.
Tata has been focusing on developing autonomous and hybrid vehicles to boost sales and improve safety.
Tata was also able to win the launch rights to Tesla Model 3, which will become the world’s first mass-market electric car.