Tata Motors climbs ahead of Q3 nos; here’s what analysts say

NEW DELHI: Shares of Tata Motors traded 1 per cent higher on Monday, ahead of the company's December quarter earnings due later in the day.

Analysts said factors such as losses due to forex hedge, demand trends for JLR and its outlook, particularly in China and the US, and updates on new launches will be watched keenly. Besides, Chery JV operations in China and business outlook for the commercial vehicle (CV) segment will be followed too.

At 10.02 am, the stock traded 1.31 per cent higher at Rs 389.10 on BSE.

Brokerage HDFC Securities expects the company to report 17 per cent YoY growth in consolidated revenue growth for the quarter, led by a 54 per cent YoY (13 per cent QoQ) jump in standalone volumes and 3 per cent YoY (9 per cent QoQ) growth in JLR volumes.

Ebitda margins may contract by 130 basis points YoY to 12.4 per cent, led by discounting in JLR (model rundown impact), the brokerage said.

Discounts and demand trend in the CV segment, the impact of forex hedge loss and the impact update on Chery JV will be key monitorables, the brokerage said.

"We expect JLR's (including JV) volume to rise 4.3 per cent YoY (+3.6 per cent QoQ), led by strong growth in Land Rover sales and an increase in volume in China JV," said Motilal Oswal Securities.

This brokerage expects JLR's adjusted PAT to increase 167 per cent YoY to £297 million.

We expect standalone operations to turn PAT positive at Rs 130 crore, the brokerage said.

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