Tata Motors is trading higher by 2.5% at Rs 399.80, extending its previous day’s 1% gain, on reports that the automobile major has drawn up a major cost-cutting plan. The stock is currently trading close to its record high of Rs 400.95 which was touched on November 5 on the National Stock Exchange.
There would be a temporary freeze on ‘large hirings’ and also that the number of suppliers would be reduced, the CNBC TV18 report suggested quoting a senior company official.
Tata Motors had posted a standalone loss of Rs 804 crore for the quarter ended September 2013. The company had a profit of Rs 867 crore in the same quarter a year ago.
Continued slowdown in economic activity, low level of transport freight and infrastructure activity, frequent increase in diesel price and tight financing environment, have impacted the industry during the quarter, Tata Motors said in a press release.