Shares of Tata Motors fell 4% on Thursday as luxury carmaker Jaguar Land Rover (JLR) widened its losses for the April-June period due to poor results.

However, by 10.03 am, the stock had retreated from its first-day low, down 1.4% to Rs 437.55 on the BSE. Jaguar Land Rover tax widens Tata Motors loss to Rs 5,007 crore.

JLR’s revenue was impacted by supply changes, including semiconductor shortages, lower-than-expected production growth for the new Range Rover and new Range Rover Sport, and production shutdowns in China.

JLR’s loss primarily reflected lower wholesale volumes and a weaker mix, as well as unfavourable inflation and currency and commodity revaluations. Additionally, Tata Motors said in its earnings report that operating margins were due to lower sales volumes and an unfavourable mix.

Jefferies said weak earnings at JLR led to a drop in EBITDA, but the company expected a significant improvement in the next quarter. However, the foreign brokerage cut its FY23 EPS forecast by 24%.

Nomura pointed to weaker-than-expected earnings for the first quarter of fiscal 2023, adding that debt reduction is a key driver of the stock’s future performance. The brokerage also said improving chip supply would help JLR.